Alphabet (GOOG) Options Signal $350 Bullish Battle: How to Play the AI-Powered Breakout

• GOOG surges 1.11% to $336.43, eyeing a record close above $340
• Options market shows 65% more call open interest than puts, with heavy OI at $350 and $327.5 strikes
• BofA just raised its price target to $370, while Apple’s AI partnership fuels $4 trillion market cap optimism

The stock’s options activity and technicals are screaming one thing: bulls are stacking the deck for a $350+ move. Let’s break down why this is a high-conviction setup—and where the risks lie.The Options Warzone: Calls at $350 vs. Puts at $327.5

This Friday’s options chain is a chessboard. The GOOG20260116C350 call has 27,305 open contracts—the most of any strike—while the GOOG20260116P327.5 put has 10,454 open contracts. That’s not random. It means:

• Bulls are betting GOOG will pierce $350 before Friday, with 27k+ contracts hedging that move
• Bears are bracing for a potential pullback to $327.5, using puts to lock in downside protection

The 0.81 put/call ratio (call OI dominates) suggests aggressive bullish positioning. But here’s the catch: if GOOG stumbles below $334.35 (today’s intraday low), those puts could trigger a short-term selloff. No whale trades to worry about today, but the options war is real.

Apple’s AI Bet Validates Alphabet’s $370 Ambition

Let’s connect the dots. The Apple-Google partnership isn’t just buzz—it’s a distribution megaphone for Gemini. BofA’s $370 price target isn’t a stretch when you consider:

• Apple’s ecosystem could expose Gemini to 1 billion+ users, creating a flywheel for Alphabet’s AI-as-a-service model
• The $4 trillion market cap milestone proves investors are pricing in long-term dominance

But here’s the rub: the stock’s RSI of 85.74 is in overbought territory. A consolidation phase is likely before the next leg higher. The key is whether GOOG holds its 30-day support at $314.70. If it breaks that, the 200D moving average at $176.72 becomes a distant concern.

Trade Ideas: Calls for the Breakout, Puts for the Safety NetFor options traders:

• Aggressive play: Buy GOOG20260116C350 (strike price $350, expiring Friday). If GOOG hits $340 by Friday, this call could double. Stop loss if price dips below $334.35.
• Cautious play: Buy GOOG20260123P327.5 (strike $327.5, next Friday). Protects against a pullback while letting you ride the rebound.

For stock traders:

• Entry near $334.35 (today’s low) if support holds. Target $340 first, then $370 (BofA’s target). Use $314.70 as a hard stop.
• Alternative: A bullish call spread using GOOG20260123C340 and GOOG20260123C365 to cap risk while capitalizing on a $350+ move.

Volatility on the Horizon: Ride the AI Wave or Hedge the Storm

Alphabet’s options market is a microcosm of investor confidence. The $350 strike is both a psychological barrier and a liquidity magnet. If bulls win, the $370 target feels inevitable. If bears push GOOG toward $327.5, it’s a buying opportunity for the long-term. Either way, this is a stock where the AI narrative is now priced into the stock—but execution will determine if the $4 trillion dream holds.

Bottom line: Position yourself for the $350 battle. The tools are there—now it’s about timing and discipline.