Alphabet (GOOGL) Options Signal $335 Bullish Bias Amid AI Growth—Here’s How to Play It

• GOOGL trades at $304.12, up 0.55% with volume surging to 13.9M—triple its 30-day average.
• Options market shows 24,316 open calls at $335 (top OTM strike) vs. 21,994 puts at $290—hinting at a $30–$35 premium target.
• Analysts just raised price targets to $350 (Citigroup) and $335 (Bank of America) on AI/cloud momentum.
• Block trades show 1,000 calls bought at $260 (GOOGL20251219C260) and 500 puts at $235 (GOOGL20260320P235)—betting on 2026 volatility.

The stock is caught between short-term bearish momentum and long-term AI-driven optimism. Here’s how to position for both.Bullish Pressure at $335, But Puts Warn of $290 Floor

The options market isn’t just bullish—it’s picking a fight with gravity. Over 24,000 open calls at $335 (GOOGL20251219C335) and 17,511 at $340 suggest a strong conviction that GOOGL will break above its 30-day resistance of $319.68. That’s not just noise: the 30-day RSI at 35 means oversold conditions could spark a rebound.

But don’t ignore the puts. The $290 strike (GOOGL20251219P290) has 21,994 open contracts—enough to swallow a $13 drop from current levels. It’s a psychological floor: the 200-day Bollinger Band sits at $293.82, so a break below $290 would trigger panic.

Block trades add intrigue. The 1,000 calls bought at $260 (GOOGL20251219C260) today suggest near-term bullish bets, while the $240 puts (GOOGL20260116P240) traded in January hint at hedging against a potential earnings miss.

News Flow: SpaceX Windfall and AI Hype Fuel the Fire

Alphabet’s $100B+ stake in SpaceX isn’t just a hidden asset—it’s a rocket booster. With Starlink and orbital data centers in play, the stock’s long-term narrative is about moonshots. Combine that with Q3 earnings showing 13.9% revenue growth and a $350 price target from Citigroup, and you’ve got a recipe for call-option mania.

But here’s the catch: insiders sold 1.37% of their holdings recently. That doesn’t kill the bullish case, but it’s a reminder that fundamentals don’t always trump psychology. The real test will be whether AI-driven cloud growth outpaces rising capital costs.

Trade Ideas: Calls for Breakouts, Puts for ProtectionFor Options Traders:

• Aggressive Play: Buy the $310 call expiring Dec 26 (GOOGL20251226C310). If GOOGL breaks above $306.19 (today’s high), this strike could catch fire.
• Conservative Spread: Sell the $330 call (GOOGL20251226C330) against a long $310 call. Caps risk while profiting from a $30–$35 pop.
• Hedge: Buy the $290 put (GOOGL20251226P290) for insurance. If the stock dips below $300.97 (today’s low), this could limit losses.

For Stock Traders:

• Entry: Consider buying near $304 if the price holds above $300.97.
• Targets: First aim for $312 (middle Bollinger Band at $312.36), then $320 (30-day resistance at $319.68).
• Stop-Loss: Below $300 triggers a reevaluation—this is where the short-term bearish trend could dominate.

Volatility on the Horizon

The next 72 hours will be critical. If GOOGL closes above $306.19, the $335 call frenzy could turn into a self-fulfilling prophecy. But if it fails to hold $300, the puts at $290 might force a sharp correction. Either way, the block trades in January (like the $240 puts) suggest big players are bracing for a bumpy ride.

This isn’t a coin flip—it’s a calculated bet on AI’s next leap. And right now, the odds favor the bulls.