Alphabet (GOOG) Options Signal $340–$350 Bullish Setup as AI Momentum Fuels Breakout Potential

Quick Take

• GOOG surges 1.27% to $330.14, with RSI near overbought levels and MACD above 4.8
• Call open interest dominates (put/call ratio: 0.79), especially at $340 and $350 strikes
• Block trade buys 1,000 GOOG20260116C340 calls as Mizuho raises price target to $365

The Big Picture

Alphabet’s stock is dancing on the edge of a breakout. With AI-driven product launches, a $4 trillion market cap forecast, and institutional bets piling into call options, today’s data tells a story of aggressive bullish positioning. But the RSI hovering at 87.2 and Bollinger Bands squeezing near the upper edge mean we need to balance optimism with caution.

Bullish Options Flow and Whale Moves

Let’s start with the options chain. For Friday’s expiration, the GOOG20260116C340 call has 16,317 open contracts—nearly double the next strike. That’s not just retail noise; it’s a stampede of capital betting on a $340+ move. The block trade buying 1,000 of these calls at $152,000 total turnover? That’s a whale’s thumbprint.

But don’t ignore the puts. The GOOG20260116P320 has 4,729 open contracts, hinting some players are hedging a pullback. The key takeaway? The market is pricing in a sharp rally but with a possible consolidation zone around $320–$325 if the move stumbles.

News That Fuels the Fire

Alphabet’s recent news isn’t just background noise. Mizuho and Scotiabank hiking price targets to $365 and $375? That’s a green light for AI and cloud investors. The Gemini-enhanced Gmail rollout and Waymo’s regulatory tailwinds are turning Alphabet into a productivity and autonomous tech juggernaut.

And let’s not forget Warren Buffett’s Berkshire Hathaway just added $340 million in Alphabet shares. When the Oracle of Omaha bets, it’s a signal that long-term growth is on the table—even if Pichai’s recent $10 million insider sale is just tax planning, not a bearish signal.

Trade Ideas: Calls, Breakouts, and Precision Entries

For options traders, the GOOG20260116C340 is the standout. With the stock trading at $330.14, this call has 100 points of intrinsic value and enough time to ride a $340+ move. If you want to stretch further, the GOOG20260116C350 (27,325 open contracts) offers higher reward but needs a stronger push. Both expire Friday, so time decay is a factor—act fast.

For stock players, consider entry near $328–$330 if the 30-day support at $314.27 holds. A breakout above $331.48 (today’s high) could target $340, with a stop-loss below $325. If the price corrects, a bearish put spread using GOOG20260116P320 and GOOG20260116P315 could capture a pullback to $320–$325.

Volatility on the Horizon

Alphabet isn’t just a tech stock—it’s a barometer for AI’s economic impact. With $350 calls seeing heavy action and a $4 trillion market cap in sight, the next few weeks could be a rollercoaster. The Bollinger Bands are already stretched, and the RSI’s overbought warning means a short-term cooldown is likely. But the long-term trend? That’s still pointing north.

Bottom line: This is a stock in motion. The options market is pricing in a $340+ move, and the fundamentals are firing on all cylinders. But keep your seatbelt fastened—this ride might have a few bumps before it hits the stratosphere.