Alphabet (GOOG) Options Signal $320 Bullish Battle: How Traders Can Position for a Volatility-Driven Breakout

• GOOG surges 1.94% to $303.83, but technicals hint at a short-term bearish reversal
• Options data shows 17,101 open calls at $320 vs. 9,690 puts at $290—betting on a directional showdown
• Block trades and a 1,183% stake boost by Sanders Morris Harris add layers to the narrative

Here’s the takeaway: GOOG’s options market is locked in a high-stakes tug-of-war between bulls eyeing $320 and bears bracing for a $290 support test. While the stock trades near a 1.9% intraday gain, the technicals and options positioning suggest a volatile crossroads ahead. Let’s break down why this could be a pivotal day for traders.

The $320 Call Wall and the $290 Put Floor: A Battle for Direction

The options chain tells a story of conflicting expectations. For Friday’s expiry, 17,101 open calls at $320 (GOOG20251219C320) dwarf the next strike’s 8,392 contracts. This isn’t just noise—it’s a wall of liquidity that could either catalyze a breakout or act as a magnet for profit-taking. Meanwhile, 9,690 puts at $290 (GOOG20251219P290) anchor downside risk, with heavy open interest suggesting a psychological floor.

But here’s the twist: block trades add intrigue. A recent 800-lot buy of GOOG20250919C245 (buy call) and multiple large trades at $235–$260 strikes hint at institutional positioning. These moves, though expiring months ago, suggest a pattern of strategic call accumulation—possibly ahead of earnings or product announcements.

News vs. Options: A Mixed Bag of Signals

Alphabet’s pre-market plunge (3.14% down) clashes with its fundamentals. The stock just reported $102.35B in Q3 revenue (up 15.9% YoY) and a $2.87 EPS beat. Yet the selloff reflects broader market jitters about Fed policy, not a breakdown in Alphabet’s business. Sanders Morris Harris’s 1,183% stake increase to $4.84M also signals confidence, but retail traders are hedging—the put/call ratio of 0.73 for open interest shows calls dominate, amplifying upside bias.

Actionable Trades: Calls for Breakouts, Puts for Insurance

For options traders:

• Bullish Play: Buy GOOG20251219C320 (this Friday’s $320 call) if the stock holds above $305.26 (intraday high). Target a close above $325 to trigger call buyers.
• Bearish Hedge: Buy GOOG20251226P290 (next Friday’s $290 put) if GOOG dips below $301.63 (midpoint of Bollinger Bands). This protects against a test of 200D support at $164.29.

For stock traders:

• Entry near $303.83 if the 30D MA ($303.20) holds. Target $315–$320 if RSI (currently at 29.3) rebounds.
• Stop-loss below $300.63 (intraday low) to avoid a breakdown into $292.53 (lower Bollinger Band).

Volatility on the Horizon: A Setup for Big Moves

The stage is set for a breakout or breakdown. With RSI near oversold levels and Bollinger Bands stretched wide, a push above $305.26 could trigger a rally toward $332.46 (upper band). Conversely, a close below $300.63 risks a retest of $284.45 (30D support). The options data isn’t just numbers—it’s a roadmap of where smart money is bracing. Stay nimble, and let the $320 call wall and $290 put floor guide your next move.