Alphabet (GOOGL) Options Signal Bullish Breakout: 320 Call OI Surge and AI-Driven Momentum

• Current price: $314.52, up 0.49% from previous close
• Options data shows 320 call OI dominance (13,265 contracts) vs. 310 put OI (6,762 contracts)
• Block trades reveal $2.5M+ put/call activity for Jan 16 and March 20 expirations

Here’s what the data tells us: Alphabet shows clear upside momentum with a short-term bullish Kline pattern, strong cloud/AI news tailwinds, and options positioning that favors a breakout above $320. The 320 strike is a critical inflection point—let’s break down why this matters for traders today.

Bullish Imbalance in Options Activity

The options market is shouting "buy the rumor, sell the news." For this Friday’s expirations, the 320 call ($GOOGL20260102C320) dominates open interest at 13,265 contracts—nearly double the nearest competitor. This suggests institutional players are hedging or scaling up positions ahead of a potential push above $322.50 (the intraday high).

Meanwhile, the put/call ratio for open interest sits at 0.838, meaning calls outweigh puts by 17%. That’s not just noise—it’s a vote of confidence. But don’t ignore the 310 put ($GOOGL20260102P310) at 6,762 contracts. It acts as a soft floor: if GOOGL dips below $314.03 (intraday low), that strike could see aggressive buying.

Block trades add intrigue. The $2.5M+ GOOGL20260116P240 put purchase and $1.7M+ GOOGL20260320C270 call buy signal big players are hedging for volatility in January and March. These aren’t random—they’re strategic bets on a near-term breakout and long-term AI-driven growth.

News That Fuels the Bull Case

Alphabet’s recent antitrust win and cloud growth aren’t just headlines—they’re catalysts. The 34% YoY cloud revenue jump and $155B backlog growth validate the company’s AI infrastructure bets. Gemini’s App Store dominance and TPU sales to Meta/Anthropic show Alphabet isn’t just competing in AI—it’s monetizing it.

Institutional investors are taking notice. UBS and FMR LLC added 54.3M shares in Q3 2025 alone. When big money piles in, it creates a self-fulfilling prophecy: higher demand = higher prices. The recent analyst price target hikes to $385 also suggest the Street sees more room to run.

Actionable Trade IdeasFor Options Traders:

• This Friday: Buy the $GOOGL20260102C320 call at $314.52. Target a $322.50 close (intraday high) to capture a 2.5% move. If GOOGL dips to $314.03, consider the $GOOGL20260102P310 put as a hedge.
• Next Friday: The $GOOGL20260109C325 call (3,984 OI) offers leverage if the $320 level breaks. Entry near $316.99 (today’s open) with a $324.31 target (Bollinger upper band).

For Stock Traders:

• Entry: Consider buying GOOGL near $314.03 (intraday low) if it holds above the 30D support at $319.52.
• Target: Aim for $322.50 (intraday high) as the first resistance. A break above $324.31 (Bollinger upper band) would validate the bullish case.
• Stop Loss: Below $312.23 (middle Bollinger band) would trigger a reevaluation.

Volatility on the Horizon

Alphabet’s options activity and fundamentals align for a bullish breakout. The 320 call OI surge, combined with AI/cloud momentum and institutional buying, paints a clear picture: traders are pricing in a move above $322.50. But don’t ignore the risks—RSI at 41.65 suggests we’re not in overbought territory yet, but a pullback to $310 (put-heavy zone) could test resolve.

Bottom line: This is a stock in motion. The question isn’t whether GOOGL can go higher—it’s how quickly the market will price in its AI-driven future.