Alphabet (GOOG) Options Highlight $320 Call Focus: Bullish Setup Amid AI-Driven Momentum on Dec 19, 2025

• Current Price Action: GOOG trades at $306.32, up 0.85% with volume surging to 11.4M shares. Intraday highs hit $307.62, nearing the 30D support/resistance zone of $319.90–$320.84.
• Options Imbalance: Call open interest (1.18M) outpaces puts (865K), with heavy call OI at $320 (10,249 contracts this Friday) and $315 (6,882). The put/call ratio for open interest is 0.73, signaling bullish bias.
• News Catalysts: Analysts raised price targets to $385 (JPMorgan), citing AI advancements like Gemini 3 and cloud deals. Q3 2025 earnings beat estimates by 25%, and institutional ownership hit 27.26%.

The Core Insight: GOOG’s options market and technicals align on a bullish narrative. Heavy call positioning at $320 and $315 suggests a potential breakout above $307.62, while oversold RSI (36.19) hints at near-term rebound. The risk? A breakdown below $302.34 could trigger panic selling.What the Options Chain Reveals About Market Sentiment

The options data tells a story of cautious optimism. For this Friday’s expirations, the GOOG20251219C320 call has 10,249 open contracts—the highest among OTM calls—while the GOOG20251219P290 put leads puts with 13,075 OI. This suggests traders are hedging downside risk but leaning into a $320+ move. The next Friday chain amplifies this: GOOG20251226C320 (11,863 OI) and GOOG20251226C350 (5,121 OI) show extended bullish positioning.

Block trades add intrigue. A $1.14M trade in GOOG20250919C235 and $467K in GOOG20250919C245 (both expiring in September) hint at long-term bullish bets. These could signal institutional confidence in Alphabet’s AI-driven growth trajectory, especially with Gemini 3 and TPU rentals gaining traction.

How News and Fundamentals Fuel the Bull Case

Alphabet’s recent news isn’t just noise—it’s a catalyst. The company’s 15.9% YoY revenue growth in Q3 2025 and 32.23% net margin outpace peers. Analysts at Wedbush and JPMorgan raised targets to $350 and $385, betting on AI and cloud expansion. The $3.48M government cloud contract and $7B data center deal with Hut 8 further solidify its infrastructure edge.

But here’s the catch: insider sales ($63.98M in three months) and a P/E of 29.96 (vs. S&P 500’s 22) mean the stock is priced for perfection. If AI hype falters or cloud margins shrink, the $294.77 lower Bollinger Band becomes critical support.

Actionable Trade Setups for TodayFor Options Traders:

• Bullish Play: Buy the GOOG20251226C320 call (strike price $320, expiring Dec 26). Rationale: Heavy OI at this level suggests a liquidity magnet. If GOOG breaks above $307.62 (intraday high), this strike could see rapid premium gains.
• Bearish Hedge: Sell the GOOG20251226P290 put (strike $290) against long GOOG shares. The 13,075 OI indicates strong put buyers ready to step in if the stock dips below $302.34.

For Stock Traders:

• Entry Near $313.03: The middle Bollinger Band at $313.03 acts as dynamic support. If GOOG holds here, target $320 (30D support/resistance zone). Stop-loss below $302.34 invalidates the bullish case.
• Short-Term Scalp: Buy on dips to $305–$307, aiming for $310–$312. The RSI at 36.19 suggests a rebound is likely, but volume must confirm the move.

Volatility on the Horizon

The next 72 hours will test GOOG’s resolve. A close above $313.03 could trigger a rally toward $320, aligning with both technical and options data. Conversely, a breakdown below $302.34 might force a retest of the $294.77 lower band. Either way, the options market has priced in a $320+ move by December 2026—making this a pivotal week for traders to position accordingly.