Alphabet (GOOG) Options Signal Bullish Bias: Key Strike Levels and AI-Driven Opportunities

• Current price near $319.45, up 0.54% from open, with RSI at 71.7 (overbought).
• Call open interest dominates at $340 and $337.50 strikes for Friday expiration; puts cluster at $320 and $285.
• Block trades on calls suggest big money targeting a break above $335.

Here’s the takeaway: options market sentiment is decisively bullish, with heavy call volume at key resistance levels and AI-driven news fueling long-term optimism. But short-term volatility from the EU fine and Bollinger Band extremes means traders need to balance aggression with caution.

What the Options Chain Reveals About Market Sentiment

Let’s start with the numbers. For this Friday’s expiration, GOOG20251212C340 and GOOG20251212C337.5 have the highest open interest (17,244 and 6,959 contracts, respectively). That’s not random—it’s a vote of confidence. Traders are pricing in a potential pop above $335, where the 30D moving average (296.84) and Bollinger Middle Band (304.77) have already been surpassed.

But don’t ignore the puts. The GOOG20251212P320 strike has 12,007 open contracts, hinting at a support level where sellers might step in. The put/call ratio of 0.745 (calls > puts) reinforces the bullish tilt.

Now, the block trades: A recent 800-lot buy of GOOG20251003C250 and multiple large call trades at $235–$260 strikes suggest institutional players are hedging or scaling up for a mid-December move. These aren’t just noise—they’re signals.

How AI News and Regulatory Risks Shape the Narrative

Alphabet’s AI momentum is undeniable. Gemini’s 52% user growth and YouTube’s cheaper streaming packages are expanding revenue channels. Waymo’s 14M rides in 2025? That’s a real-world use case for autonomous tech, which investors love.

But the EU’s $595M fine is a speed bump. Regulators are watching Gemini closely for DMA compliance, and app store restrictions could delay fixes until early 2026. This creates a short-term headwind but doesn’t negate the long-term AI thesis. Traders betting on the stock’s resilience are likely factoring in these risks into their options strategies.

Actionable Trade Ideas for Today

For options traders, the most compelling plays are:

• Bullish: Buy GOOG20251219C335 (next Friday’s $335 call) if GOOG holds above $317.50 (the 30D support level). Target a close above $335 to trigger the call’s gamma.
• Bearish hedge: Buy GOOG20251219P320 if the stock dips to $315 (intraday low). This protects against a pullback while the AI narrative plays out.

For stock traders, consider:

• Entry near $316–$317 if the 30D support (283.89–284.99) holds. Target $325–$330 as a first profit zone, aligning with the 325 call’s open interest.
• Stop-loss below $312 to avoid a breakdown of the 200D moving average (164.29–167.83), which would trigger deeper bearish momentum.

Volatility on the Horizon

The next 72 hours will test GOOG’s resolve. A close above $320 would validate the bullish case, while a drop below $315 could reignite bearish bets. Either way, the options market is pricing in a directional move, not sideways trading.

If you’re holding calls at $335–$340, tighten stops as Friday approaches. For puts, the $320 strike could act as a magnet if the EU fine weighs on sentiment.

Bottom line: Alphabet’s AI-driven growth story is intact, but short-term volatility is inevitable. Use the options chain to your advantage—play the trend, but keep a leash on risk.