Alphabet (GOOG) Options Signal $340 Bullish Bias: How to Position for AI-Driven Breakouts in 2026

• Current Price: GOOG trades at $329.995, up 1.22% from $326.01.
• Options Imbalance: Call open interest dominates at $337.5 and $340 strikes, with 7,758 and 3,524 contracts respectively.
• News Catalysts: CEO Pichai’s $10M stock sale, Mizuho’s $365 price target, and Gemini AI integration in Gmail.

Here’s the core insight: options data and technicals align for a $335–$340 breakout. The RSI at 87.19 hints at overbought conditions, but the MACD histogram (0.205) and bullish Kline pattern suggest momentum isn’t flagging. Let’s dig into why this is a setup worth watching.

Bullish Sentiment Locked in at $340: Decoding the Options Imbalance

Options traders are betting big on upside. This Friday’s $337.5 call (OI: 7,758) and $340 call (OI: 3,524) show heavy positioning for a short-term pop. Next Friday’s $350 call (OI: 27,325) amplifies the case for a multi-week rally.

But it’s not all one-way bullishness. Puts at $320 (OI: 4,729) and $315 (OI: 3,935) hint at cautious hedging. The put/call ratio of 0.79 (calls > puts) confirms the bias, though extreme ratios can sometimes signal complacency.

No major block trades today, so no whale moves to worry about. Still, the $337.5 strike is a critical inflection point—break above it, and the $340–$350 zone becomes a magnet.

AI News and Analyst Upgrades: Fuel for the Fire

Alphabet’s AI momentum is no longer speculative. Gemini in Gmail, cloud partnerships, and TPU advancements are turning hype into revenue. Mizuho’s $365 target isn’t just a number—it’s a vote of confidence in AI monetization.

Pichai’s stock sale? Don’t read too much into it. Insiders often diversify during market peaks, and this came as GOOG neared a $3.9T market cap. The real story is the $4.75B Intersect acquisition and regulatory clarity post-antitrust rulings. These moves signal Alphabet is building for scale, not just profit.

Actionable Trades: Calls, Puts, and Price Levels to Watch

For options traders:

• This Friday: Buy GOOG20260116C3375 (strike $337.5). If GOOG hits $335, this call could see 20%+ gains by expiration.
• Next Friday: Buy GOOG20260116C350 (strike $350). A $345+ close would validate the longer-term bullish case.

For stock players:

• Entry: Consider buying GOOG near $329.50 if it holds above the 30D support at $314.27.
• Target: Aim for $335–$340 (resistance from Bollinger Bands and OI hotspots).
• Stop: Below $320 (put-heavy zone) would trigger a reevaluation.

Bearish spreads (e.g., shorting $340 calls) are risky here—RSI and MACD suggest the bulls have momentum. A safer bearish play? Sell $320 puts if GOOG dips to $325, but only if you’re comfortable holding the stock.

Volatility on the Horizon: What to Expect in 2026

Alphabet’s story isn’t just about AI—it’s about execution. The $350 call OI and Mizuho’s $365 target imply a $30+ upside from current levels. But don’t ignore the risks: RSI overbought conditions and a 32.15 P/E ratio mean earnings surprises could swing the stock wildly.

Bottom line: This is a high-conviction trade for AI believers. If the $337.5 strike breaks clean, the next 30 days could be a rocket ship. But if GOOG falters below $320, the puts at $315 and $305 could trigger a selloff. Position accordingly.