Alphabet (GOOG) Call Options Surge at $320–$322.5 Amid AI Energy Play—Here’s How to Position for a Potential Breakout

• GOOG trades at $314.09, down 0.28% from its 52-week high but remains above key moving averages.
• Options market shows heavy call open interest at $320 and $322.5, with a put/call ratio of 0.75 (bullish bias).
• Block trades on call options suggest institutional bets on a $320+ move ahead of Q1 2026.

Here’s the core insight: Bullish momentum is building. The options market is pricing in a near-term breakout above $320, supported by Alphabet’s AI-driven energy acquisition and strong technicals. While short-term volatility exists, the data leans toward upside potential.

Bullish Pressure at $320–$322.5, But Watch for Short-Term Volatility

The options chain tells a clear story. For this Friday’s expiration (Jan 2, 2026), GOOG20260102C320 and GOOG20260102C3225 dominate call open interest, with 15,180 and 13,385 contracts outstanding, respectively. This suggests a critical price level where option buyers expect a rally. Meanwhile, puts at $305 and $300 (GOOG20260102P305, GOOG20260102P300) hint at downside risk, but the put/call ratio of 0.75 confirms a clear tilt toward bullish positioning.

Block trades add intrigue. A recent $1.14M purchase of GOOG20250919C245 and $503K in GOOG20251003C250 calls (expiring in October 2025) suggests big players are hedging or accumulating long-dated bullish exposure. These trades could signal confidence in Alphabet’s AI-driven energy strategy, especially with its $4.75B Intersect acquisition locking in clean power for data centers.

News Flow: AI and Energy Synergy Bolsters Bull Case

Alphabet’s Intersect buy isn’t just a headline—it’s a strategic move. By securing 10.8 GW of clean energy capacity, the company is future-proofing its AI infrastructure against grid constraints. Analysts at JPMorgan and Bernstein have raised price targets to $300–$305, while Piper Sandler sees $330. This aligns with the options market’s focus on $320+ strikes. However, short-term risks like insider selling (~$59.6M in Q3) and rising short interest (~56M shares) could trigger dips. Retail investors, though, are drawn to Alphabet’s AI/cloud momentum, which outpaced peers in 2025.

Actionable Trade Ideas: Calls at $320, Stock Buy at $311.9

For options traders: Buy GOOG20260102C320 (Jan 2, 2026) if GOOG breaks above its 30D support/resistance range of $314.30–$315.24. A close above $315.24 would validate the short-term bullish trend, with $320 as the first target. Stop-loss below today’s intraday low of $311.9. For next Friday’s chain, GOOG20260109C320 (22,100 OI) offers a slightly longer runway.

For stock investors: Consider entry near $311.9 if GOOG holds above its 200D MA ($216.17) and Bollinger Band middle ($313.74). A breakout above $320 could target $325 (100D MA at $261.72 is far below, so no near-term resistance there). Alternatively, a bear put spread using GOOG20260102P305 and GOOG20260102P315 could hedge against a pullback.

Volatility on the Horizon: Balancing Bullish Momentum and Near-Term Risks

Alphabet’s AI and energy bets are reshaping its long-term trajectory, but short-term noise remains. The RSI at 43.57 suggests oversold conditions, but the MACD histogram (-1.32) warns of weakening bullish momentum. If GOOG dips below $311.9, watch for a test of the 30D support at $301.53. Conversely, a close above $322.5 would validate the options market’s optimism. Either way, the coming weeks will clarify whether this is a breakout or a false start.

In short: The data leans bullish, but patience is key. Position with calls at $320 or a stock buy near $311.9, and let the fundamentals (and energy infrastructure) do the heavy lifting.