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

• GOOG trades at $314.66, down 0.32% from its open, but sits above key 30D support at $319.90
• Options market shows 0.74 put/call OI ratio, with 14,425 open calls at $320 (next Friday expiry) vs 2,141 puts at $305
• Block trades reveal $1.1M+ call buying at $235–$260 strikes (expiring Sept–Oct 2025), hinting at long-term bullish positioning

The options market and technicals are painting a clear picture: upside potential dominates for GOOG today. With AI infrastructure bets like the $4.75B Intersect Power acquisition and a call-heavy options landscape, the stock is primed for a breakout—or a sharp correction if sentiment shifts. Let’s break it down.

Bullish OI Clusters and Whale Moves

The call/put open interest imbalance is striking. For next Friday’s expiry (2026-01-02), 14,425 calls at $320 (strike price) dwarf the 2,141 puts at $305. This suggests institutional players are pricing in a ~7% move above current levels. The $320 strike acts like a gravity point—every call above that (e.g., $322.5, $325) sees progressively weaker OI, confirming $320 as the "magnet" level.

Don’t ignore the block trades either. A $1.1M+ call buying spree at $235–$260 strikes (expiring Sept–Oct 2025) shows big money is hedging for a multi-month rally. These aren’t short-term bets—they’re positioning for Alphabet’s AI infrastructure play to pay off in 2026.

News That Fuels the Fire

Alphabet’s $4.75B Intersect Power deal isn’t just about data centers—it’s about future-proofing AI growth. As global AI demand surges, energy bottlenecks become existential risks. By securing power infrastructure now, Alphabet is sending a signal: "We’re building for the long game." This dovetails with the options market’s focus on $320+ strikes, where AI-driven revenue could materialize.

But here’s the catch: insider selling (like CEO Pichai’s $9.7M exit) creates short-term noise. Traders might sell the news in the near term, but the broader narrative—backed by analyst upgrades and $270–$350 price targets—remains intact. The key is to ride the volatility, not fight it.

Actionable Trades for TodayOptions Play: Buy GOOG20260102C320 (next Friday expiry). Why? The $320 strike has the highest OI and is just 2% above current price. If GOOG holds above $313.32 (intraday low), this call could leverage a 7–10% move with defined risk. Exit at breakeven ($320) or hold for a post-holiday pop if AI headlines heat up.Stock Play: Consider entry near $319.90 (30D support) if price tests this level. Target $325–$327.5 (aligns with 30D resistance and Bollinger Upper Band at $327.67). Stop-loss below $313.32 (intraday low) to protect against a breakdown.Bearish Hedge: For risk-averse traders, a put spread at $305–$300 (GOOG20260102P305 + short GOOG20260102P300) caps losses while capitalizing on a potential pullback. The 2,141 OI at $305 suggests a floor if sentiment flips.Volatility on the Horizon

Alphabet’s options market is a chessboard of AI bets and energy infrastructure plays. The $320 strike isn’t just a number—it’s a psychological threshold where call buyers and AI optimism collide. While short-term dips (like today’s 0.32% drop) test resolve, the 30D and 200D moving averages ($306.50 vs $214.69) show this stock is in a multi-year uptrend.

For traders, the message is clear: position for a breakout, but keep a tight leash. With AI demand surging and energy deals like Intersect Power locking in long-term value, Alphabet’s next move could be its most impactful yet. The question isn’t whether the stock will go higher—it’s when the market will price in the next phase of its AI dominance.