Alphabet (GOOGL) Options Signal $335 Bullish Bias, But $290 Puts Warn of Downside — Here’s How to Play It

• Alphabet (GOOGL) trades at $304.79, down 1.11% amid a short-term bearish Kline pattern but remains above its 30D moving average ($301.19).
• Options data shows heavy call open interest at $335 and $340, while $290 puts dominate bearish positioning—put/call ratio for open interest is 0.808, favoring calls.
• Block trades on the GOOGL20260116P240 put ($2.4M turnover) and GOOGL20260320C270 call ($1.7M turnover) hint at institutional hedging or speculative bets.

The Core Insight: GOOGL’s price action and options flow tell a mixed story. While technicals and call-heavy OI suggest a potential rebound toward $335, the surge in $290 put activity and regulatory risks (like the EU fine) mean traders should balance optimism with caution. The stock is sitting at a crossroads—will it break out of its Bollinger Band lower bound or retreat toward key support?Bullish Pressure vs. Bearish Safeguards

The options market is clearly leaning bullish in the short term. This Friday’s $335 call (OI: 22,532) and $340 call (OI: 17,593) show heavy accumulation at strikes 10–13% above current price. That’s not just noise—it’s a vote of confidence from traders expecting a rebound. But don’t ignore the puts: the $290 put (OI: 21,763) and $230 put (OI: 17,322) suggest a significant portion of the market is bracing for a drop below $300. The block trade on the GOOGL20260116P240 put ($2.4M) adds weight to the bearish camp, possibly signaling a hedge against the EU fine or a strategic short-term bet.

News-Driven Narrative: AI Optimism vs. Regulatory Headwinds

Alphabet’s recent news is a double-edged sword. Analysts raised price targets to $343–$385 post-Q3 earnings, and renewable energy partnerships (like the TotalEnergies deal) reinforce its ESG appeal. But the EU investigation and Pichai’s insider sales ($10.38M) introduce uncertainty. Here’s the catch: while the fundamentals support a bullish bias, the regulatory risks and put activity mean volatility isn’t going away. Investors are pricing in both AI-driven growth and potential setbacks.

Actionable Trade IdeasFor Options Traders:

• Bullish Play: Buy the GOOGL20251219C335 call if GOOGL breaks above $310.77 (today’s high). The $335 strike is a psychological hurdle with heavy OI—success here could trigger a cascade of call buyers.
• Bearish Hedge: Buy the GOOGL20251219P290 put if the price dips below $302.59 (intraday low). The $290 strike is a key support level with 21,763 contracts waiting for a breakdown.

For Stock Traders:

• Entry Near $301.19: If GOOGL holds above its 30D MA ($301.19), consider a long entry with a target at $310.17 (middle Bollinger Band). Stop-loss below $297.50 (30D support range).
• Short-Term Sell-Off Play: If the stock drops to $290–$295 (put-heavy zone), look for a bounce as the $290 put OI could act as a floor.

Volatility on the Horizon

The next 72 hours will be critical. If GOOGL closes above $310.77 this Friday, the $335 call (GOOGL20251219C335) could see explosive gains. But if the EU fine or earnings guidance misses weigh in, the $290 put (GOOGL20251219P290) becomes a safer bet. Either way, the block trades on the $240 put and $270 call suggest big players are positioning for a volatile January 2026. Stay nimble—this stock isn’t done swinging yet.