Alphabet (GOOG) Options Signal $340 Bullish Play Amid Legal Risks: Here’s How to Position for Volatility

• GOOG plunges 1.4% on bearish engulfing pattern, yet 30D MA ($299.88) and 200D MA ($209.25) hint at long-term bullish momentum.
• Call open interest spikes at $340 (13,038 contracts) and $320 (9,118), while puts at $285 (10,186) and $290 (7,660) signal cautious downside bets.
• Block trades on older-dated calls (e.g., GOOG20250919C235) suggest institutional positioning, but near-term options activity dominates this Friday’s expiry.

The stock is caught in a tug-of-war: short-term bearish technicals clash with long-term AI-driven optimism. But here’s the kicker—options data shows heavy liquidity at key strikes, creating a roadmap for traders to navigate the chaos.The Options Playbook: Calls vs. Puts in the Crosshairs

Let’s break down the OTM options. Calls at $340 and $320 have the highest open interest this Friday, while puts at $285 and $290 dominate the downside. This isn’t random—it’s a signal. The $340 call OI suggests some big players are betting on a rebound, possibly targeting the upper Bollinger Band at $340.04. But the puts at $285 (near 30D support) show equal caution: if the stock cracks below $307.54 (middle Bollinger Band), the $285 level could act as a magnet for panic selling.

Block trades on older-dated calls (like GOOG20250919C235) are intriguing. While their expiration is weeks away, the sheer volume ($1.1M turnover) hints at strategic positioning. Think of it like a chess move—big players are hedging or scaling up ahead of potential catalysts, even if the immediate action is muted.

News That Shapes the Narrative

Alphabet’s legal woes with Disney and OpenAI’s GPT-5.2 rollout are no small potatoes. The stock dipped 0.54% on the news, but here’s the twist: analysts are still raising price targets to $365. Why? Because AI isn’t going away. OpenAI’s GPT-5.2 might steal headlines today, but Alphabet’s long-term MA crossovers (30D above 200D) suggest the fundamentals remain intact. The challenge? Short-term sentiment is fragile. If the stock tests $307.54, the Bollinger Band could become a battleground—break below, and the $285 put-heavy zone gets a lot more crowded.

Actionable Trades: Calls, Puts, and Precision Entries

For options traders, this Friday’s $340 call (GOOG20251212C340) is a high-liquidity play. If GOOG rebounds off the Bollinger middle ($307.54), buying this call could capitalize on a bounce. For the more aggressive, a call debit spread at $320/$340 (using GOOG20251212C320 and GOOG20251212C340) limits risk while leveraging the heavy OI. Next Friday’s $320 call (GOOG20251219C320) is also worth eyeing if the stock stabilizes.

Stock traders: Consider entries near $307.54 if support holds. A break above $316.13 (intraday high) could target $320–$325. But if the stock gaps below $306.96, short-term bearishness kicks in—look to sell puts at $285 or $290 for downside protection.

Volatility on the Horizon: Balancing the Scales

This isn’t a simple long or short call. The market is pricing in both AI optimism and regulatory risks. The key is liquidity: the $340 call and $285 put zones are where the action will crystallize. If GOOG holds its 30D MA ($299.88), the long-term bulls might reclaim control. But if the $285 support crumbles, the puts could accelerate the slide. Either way, the options market has handed us a blueprint—use it to pick your battles, not fight them all at once.