Alphabet (GOOG) Options Signal $320 Bullish Bias: Here’s How to Play the AI-Driven Rebound

• GOOG trades at $309.09, down 0.46% after opening at $312.63
• Call open interest dominates at $320 and $335 strikes, with put pressure at $290
• Block trades hint at institutional interest in $235–$260 call options

Here’s the thing: GOOG’s options market is screaming bullish—but with a tightrope walk. Calls at $320 and $335 (expiring this Friday) have 12,715 and 8,224 open contracts, respectively, while puts at $290 ($7,327 OI) and $285 ($6,734 OI) show defensive positioning. The 0.74 put/call ratio (call-heavy) suggests traders are betting on a rebound, but volatility isn’t gone. Let’s break it down.

Bullish Calls at $320–$335: A Battle for Breakout

The options chain is a goldmine for directional clues. Right now, GOOG20251219C320 and GOOG20251219C335 (this Friday’s expirations) dominate call open interest. That’s not random—it’s a crowd-sourced bet that GOOG will claw back above its 30D moving average ($300.83) and test Bollinger Upper Band ($338.73).

But don’t ignore the puts. GOOG20251219P290 and GOOG20251219P285 (same expiration) have significant open interest, hinting some traders expect a pullback to key support levels. The 30D support zone ($284.45–$285.38) could act as a floor if the AI hype falters.

Block trades add intrigue. The GOOG20250919C235 and GOOG20251003C250 options (expiring in October 2025) saw massive $1.1M+ turnover, with one trade explicitly labeled a buy call. That’s institutional money hedging or scaling up for a long-term AI-driven rally.

News: SpaceX Windfall and AI Ambitions Fuel Optimism

Alphabet’s $800B SpaceX stake isn’t just a footnote—it’s a rocket booster. If that ETF-held investment gets marked up, it could juice earnings reports and justify a price rebound. Combine that with YouTube TV’s AI-driven "skinny bundles" and Google Cloud’s AI push, and you’ve got a narrative that’s hard to ignore.

But here’s the catch: The stock’s 0.46% drop today clashes with long-term bullish moving averages (200D at $209.95). Retail traders might be buying the dip, but institutional players could be fading it. The key is whether GOOG holds above $305.74 (today’s low) or collapses toward $285 support.

Trade Ideas: Calls for the Rebound, Puts for the Safety Net

• For Options Traders: Buy GOOG20251219C320 (strike price $320, this Friday) if GOOG closes above $310 by expiration. The RSI at 57.92 suggests it’s not overbought yet. For a longer play, GOOG20251226C335 (next Friday) offers leverage if the AI narrative gains steam.
• For Pessimists: Buy GOOG20251219P290 to hedge downside risk. If GOOG breaks below $305.74, this put could cap losses.
• For Stock Buyers: Consider entry near $305.74 (intraday low) if it holds above 30D support ($284.45). Target $315–$320 if the 100D MA ($251.36) starts catching up.

Volatility on the Horizon: Balancing Bullish Hopes and Bearish Fears

The market is split. On one hand, AI-driven growth and SpaceX gains scream buy. On the other, technical indicators like the MACD histogram (-1.98) and RSI near neutral territory suggest a consolidation phase.

Your move? If you’re bullish, load up on those $320 calls. If you’re cautious, pair a long stock position with a $290 put. Either way, keep an eye on Friday’s options expiration—massive open interest at $320 and $290 could trigger a forced-rebalance rally or selloff.

Bottom line: GOOG isn’t just a tech stock—it’s a battleground for AI’s future. The options market is already placing its bets. Now it’s your turn.