Alphabet (GOOGL) Options Signal Bullish Bias: Key Strikes and Block Trades Point to $320 Target as Acquisition Drives Momentum

• GOOGL trades at $309.43, up 0.74% with volume surging to 12.4M shares. • Put/call open interest ratio sits at 0.805, favoring calls. • Block trades hint at $240 put and $270 call positioning ahead of Q1 2026. • The stock’s 30D support/resistance at $319.68–$320.62 aligns with heavy call open interest.

Here’s the deal: GOOGL’s options market is whispering bullishness, but technicals are mixed. The stock is perched near its 30D support at $305.30 while battling a short-term bearish Kline pattern. Yet, the long-term 200D MA at $212.19 and bullish moving averages suggest a rally is in the cards. Let’s break it down.

Bullish Call OI Dominates, But Puts Signal Caution

Open interest in OTM calls is heavy at $310 (12,921 contracts), $315 (6,295), and $320 (5,431), with next-week’s $320 call (GOOGL20260102C320) also catching attention. This suggests traders are pricing in a potential push toward $320, especially with Alphabet’s $4.75B Intersect acquisition fueling optimism.

But don’t ignore the puts. The $290 (6,334 OI) and $300 (6,006 OI) puts show hedging activity, likely from investors wary of a pullback. The put/call ratio of 0.805 (calls > puts) leans bullish, but the RSI at 43.38 and MACD histogram (-3.36) hint at near-term exhaustion.

Block trades add intrigue. A 2,000-lot put at $240 (GOOGL20260116P240) and a 1,000-lot call at $270 (GOOGL20260320C270) suggest big players are hedging or positioning for a volatile Q1 2026. The $240 put could act as a floor if the stock stumbles, while the $270 call implies a high conviction in long-term upside.

Acquisition News Fuels Momentum, But Technicals Demand Patience

Alphabet’s $4.75B Intersect buyout is a game-changer. The deal adds gigawatts of energy infrastructure, directly supporting its AI and cloud ambitions. This should boost investor confidence, especially as the market digests the strategic value of co-located data centers in Texas.

But here’s the catch: the stock’s RSI is still in oversold territory (43.38), and the MACD signal line (7.84) is above the 4.48 line, suggesting a potential near-term correction. The Bollinger Bands show GOOGL is trading near the middle band ($313.24), so a breakout above $315 could trigger a rally toward the upper band ($328.60).

Actionable Trade Ideas: Calls for the Bold, Puts for the Pragmatic

For options traders, the GOOGL20260102C320 call (next Friday expiry) is a high-conviction play if the stock breaks above $310. With 5,431 contracts in open interest, this strike could see liquidity if the Intersect news drives a surge. A tighter setup: buy the GOOGL20260102C315 call at $310.43 (current price) if the stock holds above $305.30 (intraday low).

Stock traders: Consider entries near $305.30 (support) with a target at $315. If the stock tests the 30D support at $319.68, that’s a buy signal for a swing trade. For downside protection, a bear put spread at $290 (GOOGL20260102P290) and $300 could cap losses if the RSI overcorrects.

Volatility on the Horizon: Balancing Bullish Momentum and Technical Checks

The Intersect deal is a tailwind, but the stock’s short-term bearish Kline pattern and RSI suggest a pullback is possible. Traders should watch the $310–$315 range as a key battleground. If GOOGL holds above $307.16 (previous close), the long-term bullish trend remains intact.

Bottom line: This is a stock with a clear bull case (acquisition, long-term MAs) but near-term technical hurdles. Position yourself with calls at $315–$320 for the big move, but keep a put hedge at $290 to manage risk. The next two weeks will tell if the market buys the $320 thesis—or if the bears get a say.