Alphabet (GOOG) Options Signal $340 Bullish Bias Amid AI Hype – Here’s How to Play It

• GOOG plunges 2.5% to $313.87, breaking below key support at $301.67
• $340 calls (8,039 OI) and $285 puts (10,251 OI) dominate options activity
• RSI hits overbought 80.5 while block trades hint at institutional bullishness

The market is betting on a war between AI optimists and profit-takers. GOOG’s options chain shows a clear divide: bulls are stacking $340 calls while bears hedge with $285 puts. But here’s the twist – technicals and news suggest the $340 level might not just be a battle cry, it could be the next breakout point. Let’s break it down.The $340 Call vs. $285 Put Showdown: A Tale of Two Bets

Take a look at this Friday’s options data: 8,039 open $340 calls versus 10,251 open $285 puts. That’s not just noise – it’s a chess match. Bulls are pricing in Gemini AI-driven growth pushing shares toward $400, while bears are hedging against a potential breakdown below $300. The MACD (13.73) and 15.5% Q4 revenue growth projections back the bullish case, but don’t ignore the 10,251 puts as a red flag for volatility.

Block trades add intrigue. A 800-lot buy of the GOOG20250919C245 call and multiple unknown-direction calls before September 19 suggest institutional players are pre-positioning. If AI hype translates to execution, these positions could force a short-covering rally. But if earnings miss or OpenAI’s risks materialize, the $285 puts might become a lifeline.

AI Hype Meets Reality: Why the Market Can’t Look Away

Pichai’s decade-long AI vision and Gemini’s $155B cloud backlog are fueling the bullish narrative. But here’s the catch: the stock’s Zacks Value Style Score of D (overvalued) and insider sales pressure mean this isn’t a straight rocket ship. The recent Fox News crackdown on AI misuse adds a layer of regulatory confidence, but OpenAI’s shifting role as a “burden” introduces uncertainty. Traders are pricing in AI success, but they’re also hedging for a reality check.

Actionable Trades: Calls for the Brave, Puts for the Pragmatic

For options players:

• This Friday: Buy GOOG20251212C340 calls. If GOOG rebounds above $313.87 and tests the $320 level, these could see 20-30% gains before expiration.
• Next Friday: Buy GOOG20251219C335 calls. These offer a slightly lower strike with more time to play if the $301.67 support holds.

For stock traders:

• Entry near $301.67 (Bollinger Middle Band) if price stabilizes. Target $340 if the AI narrative holds.
• Hedge with $285 puts if you’re long-term bullish but nervous about the near-term drop.

Volatility on the Horizon: Balancing AI Optimism and Technical Risks

The next 72 hours will test GOOG’s resolve. A close above $320 could reignite the $340 call frenzy, while a breakdown below $300 might trigger a wave of panic selling. Remember – the market isn’t just betting on AI’s future; it’s pricing in the risks of getting there. Stay nimble, and let the options data guide your entries.

Final note: This isn’t a buy-the-dip story. It’s a high-stakes poker game where the pot keeps getting bigger – and the blinds move faster than Gemini’s training cycles.