Alphabet A (GOOGL) Options Signal Bullish Momentum: Key Strike Levels and Strategic Entry Points for 2026

• GOOGL surges 2.5% to $320.83, breaking above 30D support/resistance cluster at $319.52–$320.31.
• Options data shows 26% more open interest in calls than puts, with heavy call OI at $320–$322.5 strikes.
• Block trades hint at institutional positioning: $2.5M in 240 puts and $1.7M in 270 calls for March 2026.

Here’s the thing: GOOGL isn’t just ticking up—it’s accelerating. The price action, options flow, and news all point to a stock primed for a breakout… but with a twist. Let’s unpack why this is a high-conviction trade for 2026.

Bullish Sentiment Locked in OTM Calls, But Puts Signal Caution

The options chain tells a story of optimism with a side of nerves. For this Friday’s expirations, the top 5 OTM calls are clustered between $320 and $340, with the $320 strike alone holding 13,265 open contracts. That’s not just noise—it’s a crowd betting on a push above the $322.5 Bollinger Band upper bound.

But don’t ignore the puts. The $315 strike for next Friday’s expirations has 11,038 open puts—the largest single put position in the chain. It’s a hedge against a potential pullback, especially with the EU antitrust lawsuit looming.

Block trades add intrigue. The $2.5M trade in GOOGL20260116P240 (a 240 put expiring Jan 16) suggests big players are hedging downside risk. Meanwhile, the $1.7M buy of GOOGL20260320C270 (a 270 call for March) shows long-term bullishness. These aren’t random bets—they’re strategic moves.

News Flow: AI Wins Outweigh Legal Headwinds for Now

Alphabet’s Q4 beat and $2.1B NexaAI acquisition are fueling investor optimism. The new AI-powered analytics platform and $300M GlobalMart contract? That’s real revenue growth. But the EU lawsuit could drag on sentiment if unresolved.

Here’s the kicker: the market is pricing in resilience. The $15B buyback and upgraded 2026 guidance signal management’s confidence. Retail investors are buying the narrative—GOOGL’s 8% post-earnings surge proves it. Still, the antitrust risk isn’t disappearing. Watch for dips if the EU case escalates.

Actionable Trades: Calls for the Breakout, Puts for the Safety Net

For options traders, the GOOGL20260109C3225 (322.5 call expiring Jan 9) is a prime candidate. Why? The stock is already testing the 320.31 resistance. A close above this level could trigger a rally toward the 324.31 Bollinger Band upper bound. This call has 10,390 open contracts—liquidity is there.

If you’re risk-averse, pair it with a GOOGL20260109P315 (315 put). The 315 strike is just below today’s intraday low of 316.99. A pullback here would test the 30D support at 319.52. The put has 11,038 open contracts—enough to cushion a short-term dip.

For stock traders:

• Entry: Consider buying near $319.52 if the 30D support holds.
• Target: Aim for $324.31 (Bollinger Band upper) or $325 (key call OI cluster).
• Stop: Trail below $316.99 (today’s open) to protect gains.

Volatility on the Horizon: Balancing AI Hype and Legal Risks

The next two weeks will test GOOGL’s momentum. A breakout above $322.5 could lock in the bullish trend, while a drop below $315 would force a reevaluation. The block trades and options flow suggest smart money is hedging both outcomes.

Bottom line: This isn’t a binary call. It’s a calculated bet on Alphabet’s AI-driven growth, with safeguards for regulatory risks. The key is staying nimble—lock in profits if the 325 level is breached, and revisit the puts if the EU case flares up.

One thing’s certain: 2026 is shaping up to be a pivotal year for GOOGL. The question is whether you’re positioned to ride the wave—or get left in the wake.