Alphabet (GOOGL) Options Signal Bullish Bias: Key Call Strikes and Block Trades Point to $335 Target

• GOOGL trades at $316.76, down 0.1% but above its 200D moving average ($206.73).

• Call open interest dominates, with 207,993 contracts vs. 165,415 puts (put/call ratio: 0.795).

• Block trades show $1.35M bought in calls to strike $260 (expiring Dec 19) and $720K in puts to $235 (expiring Mar 20).

Here’s the takeaway: options data and technicals suggest a bullish bias, with upside potential toward $335–$350 if short-term volatility resolves. But watch for regulatory risks and short-term profit-taking.

What the Options Chain Reveals About Market Sentiment

The options market is clearly leaning bullish. For next Friday’s expirations (Dec 19), the top call strike at $335 has 24,425 open contracts—nearly double the nearest competitor. This suggests a quiet consensus that GOOGL could test $335 before year-end. Meanwhile, puts are clustered at $310 ($24,938 OI) and $290 ($20,256 OI), hinting at cautious hedging below current levels.

Block trades add intrigue. A $1.35M buy of GOOGL20251219C260 (Dec 19 $260 call) shows someone is aggressively bullish on a rally. Conversely, a $720K purchase of GOOGL20260320P235 (Mar 20 $235 put) signals a hedge against deeper declines. These moves imply a "buy the dip" mindset for long-term holders but caution about near-term volatility.

News Flow: AI Wins vs. Regulatory Headwinds

Alphabet’s recent news is a mixed bag. The $700M antitrust settlement and new search retention rules could pressure ad revenue, but Gemini 3’s launch and partnerships with S&P Global and Fervo Energy are major tailwinds. Investors are betting the AI and cloud growth will outpace regulatory friction—hence the call-heavy options positioning. However, the $700M settlement’s implementation timeline (early 2026) means its impact on Q4 2025 earnings is likely muted.

Actionable Trade Ideas for Today

1. Options Play: Buy GOOGL20251219C335 (Dec 19 $335 call) if GOOGL breaks above its intraday high of $318.95. The $335 strike is a psychological target given the heavy OI, and a close above $318.95 could trigger a short-covering rally. Target: $335–$340. Stop-loss: below $304.31 (middle Bollinger Band).

1. Stock Play: Consider a long entry near $314.68 (today’s low) if support holds. The 30D support zone ($284.26–$285.38) is far below, but a pullback to $304.31 (middle BB) could offer a second entry. Target: $335. Use a tight stop below $300 to avoid a breakdown.

1. Bearish Hedge: Sell GOOGL20251219P310 (Dec 19 $310 put) if GOOGL dips below $314.68. The $310 strike has 24,938 OI, meaning a large group of puts could expire worthless if the stock holds above $310. This creates a short-term bearish spread with limited risk.

Volatility on the Horizon

The next 10 days will test GOOGL’s resolve. A break above $318.95 could trigger a rally toward $335–$350, fueled by call buyers and AI-driven optimism. But a close below $304.31 would validate the MACD’s bearish crossover and force reevaluation of the long-term bullish thesis. For now, the options market is pricing in a "buy the dip, sell the news" strategy—something to watch as 2026 regulatory deadlines loom.