Alphabet (GOOG) Options Signal $320 Bullish Bias: Here’s How to Position for AI-Driven Breakouts

• GOOG surges 1.37% to $315.60, nearing 30D support/resistance at $320
• Call open interest dominates at $320 and $325 strikes, with 13,888 contracts for next Friday
• $10B security deal and AI cloud growth validate long-term bullish case

The options market and technicals are painting a clear picture: GOOG is primed for a breakout above $320. With call open interest spiking at key strikes and AI-driven fundamentals firing on all cylinders, this is a high-probability trade—but timing and risk management matter. Let’s break it down.

Bullish Imbalance at $320 and Institutional Moves

Call open interest is concentrated at the $320 and $325 strikes for both this Friday and next Friday’s expirations. The GOOG20260102C320 contract alone has 13,888 open contracts, suggesting institutional players are hedging or accumulating exposure ahead of the January expiration. Meanwhile, put open interest is weaker (put/call ratio: 0.72), indicating limited downside protection in the options market. This imbalance often precedes sharp rallies, especially when combined with strong fundamentals.

But don’t ignore the risks. The MACD histogram is negative (-2.75), hinting at short-term profit-taking. If GOOG fails to break above $320, the RSI at 46.15 suggests a pullback could test the 30D support at $319.90. Block trades in September and October calls (like GOOG20250919C235) also suggest some players are managing older positions—watch for gamma squeezes if the stock gaps higher.

AI and Security Deals Fuel the Narrative

Alphabet’s recent $10B partnership with Palo Alto Networks and its AI cloud revenue surge ($102.35B Q3) are more than just headlines—they’re tailwinds for the stock. The market is pricing in AI-as-a-Service dominance, and the legal battle with SerpApi underscores Google’s defensible moat. Even bearish analysts can’t ignore the $4.75B Intersect Power acquisition, which secures energy for AI data centers. This isn’t just growth—it’s infrastructure for sustained momentum.

Actionable Trades: Calls, Breakouts, and Stops

For options: Buy the GOOG20260102C320 calls next Friday. With the stock trading at $315.60, this strike is just 1.4% out of the money. If GOOG closes above $320 by expiration, these contracts could see exponential gains. For a conservative play, consider a call spread between $320 and $330 to cap risk.

For stock: Enter near $315.50 with a tight stop below $310.75 (intraday low). Target $327.92 (upper Bollinger Band) as a first exit, then $335 if the AI narrative accelerates. If the RSI dips below 40, consider a put spread at $300 to hedge against a short-term correction.

Volatility on the Horizon

The next 72 hours will be critical. If GOOG holds above $315.50 and breaks $320, the 200D moving average ($213.96) becomes irrelevant—this is a stock in full momentum mode. But if the MACD crosses below the signal line or the stock gaps down below $310, re-evaluate. The key takeaway? Alphabet’s AI bets are paying off, and the options market is pricing in a $320+ breakout. Position accordingly, but don’t ignore the short-term technicals.