Alphabet (GOOG) Options Signal Bullish Bias: 330-355 Call OI Surge and $185B AI Bet Point to Strategic Entry Zones

• GOOG down 1.98% at $324.78, trading below 30D MA but above 200D MA
• Call OI dominates at $330-$355 strikes; put OI peaks at $320-$300
• Block trade sells 7,907 puts at $325 (Mar 27 exp) amid $185B AI spending news

The market is betting on a rebound. Options data and technicals clash with today’s dip, but the long-term AI narrative is pulling the stock higher. Here’s how to position for both scenarios.Bullish OI Clusters and Institutional Confidence

Call open interest (OI) is packed at $330-$355 strikes for this Friday’s expiry, with the $330 call (GOOG20260213C330) leading at 10,044 contracts. This suggests institutional players are hedging for a rebound above $330, a level that’s held as support in past dips. Meanwhile, put OI peaks at $320 (8,792 contracts), indicating a floor near $320–325. The block trade selling 7,907 puts at $325 (GOOG20260327P325) reinforces this: big money is betting the stock won’t crater below $320 in the near term.

But don’t ignore the puts. The $300 put OI (8,027) hints at downside risk if AI spending fears escalate. A break below $320 could trigger a test of the 200D MA at $164.33—though that’s extreme. For now, the key is whether GOOG holds $320 or rallies above $330. Either way, options are pricing in a directional move.

AI Spending News Fuels Optimism, But Risks Lurk

Alphabet’s $185B AI bet is the elephant in the room. Analysts love it—price targets hit $420—but the market is wary. Today’s 2% drop reflects short-term profit-taking after the earnings pop. Yet the news aligns with the call-heavy options data: investors see long-term value in AI-driven growth, even if margins take a hit. The block trade selling March puts at $325 suggests big players are confident in the stock’s ability to stabilize here, betting the AI narrative will outweigh near-term costs.

However, OpenAI’s ChatGPT dominance and Microsoft’s cloud rivalry add friction. If Gemini AI underperforms, the $300 put OI could materialize. But for now, the news flow supports the bullish OI clusters. The stock’s 100D MA ($292.65) and 200D MA ($238.99) are far below current levels, giving the long-term trend a strong upward bias.

Actionable Trades: Calls for the Rebound, Puts for the Floor

For options, target the GOOG20260213C330 call (this Friday’s $330 strike). If GOOG rebounds above $330, this contract could capitalize on short-term optimism. For a longer play, the GOOG20260220C340 call (next Friday’s $340 strike) offers leverage if the stock breaks above its 30D MA ($327.50). Both are high-liquidity strikes with strong OI backing.

On the downside, the GOOG20260213P320 put (this Friday’s $320 strike) could hedge against a breakdown. But only if you’re bearish—otherwise, let the AI narrative carry the stock higher.

For stock, consider entries near $315 (30D support) with a target at $335. If GOOG holds above $320, the 30D MA at $327.50 becomes a catalyst. Exit near $335–340 to lock in gains before the AI spending plan’s full impact plays out.

Volatility on the Horizon: Balancing AI Ambition with Near-Term Realities

The next 72 hours will test GOOG’s resolve. A close above $330 would validate the bullish OI clusters and block trade confidence. A drop below $320 could trigger a short-term selloff, but the 200D MA is too far to worry about unless the AI narrative collapses. For now, the stock is caught between a bearish short-term trend and a bullish long-term story. Your job? Position for the rebound while hedging against the $300 put OI risk. The AI train is leaving the station—don’t miss the ride.