Alphabet (GOOG) Options Signal Bullish Bias: Key Strike Levels and Trade Setups for 2026-01-16 Expiry

• GOOG trades at $332.3, down 1.2% from its 52-week high but still above all major moving averages.
• Call open interest dominates at $335–$345 strikes for Friday expiry, while puts cluster below $320.
• Q4 earnings beat, AI-driven cloud growth, and a $10B buyback signal strong fundamentals.

Here’s the thing: GOOG’s options activity and technicals are painting a clear picture. Traders are betting on a rebound above $335, but the RSI’s overbought level (86.1) hints at near-term profit-taking. Let’s break it down.

Where the Money Is: Calls at $335–$345 Outshine Puts Below $320

Options market sentiment is skewed bullish. The top call open interest for Friday expiry sits at $335 (OI: 8,049) and $340 (OI: 14,380), while puts dominate at $320 (OI: 14,991) and $305 (OI: 13,851). This suggests two camps: one expecting a rebound to $340+ and another hedging against a drop to $320. The put/call ratio of 0.82 (calls > puts) reinforces the bullish tilt. But don’t ignore the puts—$320 could act as a critical support level if the dip continues.

News That Could Tilt the Scales

Alphabet’s Q4 beat and AI-driven cloud growth are fueling optimism. The new CFO appointment and $10B buyback add credibility to its long-term story. However, the EU fine and New York antitrust lawsuit introduce regulatory noise. Here’s the catch: investors are already pricing in the bullish news (cloud growth, buybacks), but the bearish risks (regulatory fines) haven’t fully materialized yet. If the stock holds above $332.25 (intraday low), the fundamentals will likely outweigh the legal headwinds.

Actionable Trade Ideas: Calls for Friday, Longs for Next Week

For options traders: Buy GOOG20260116C335 (strike: $335, expiry: 1/16) if GOOG closes above $332.25 today. The $335 strike has enough liquidity and aligns with the 30D support level ($314.94). For next Friday, consider GOOG20260123C340 (strike: $340) if the price breaks above the 200D MA ($313.64).

For stock players: Enter a long position near $332.25 (intraday low) with a stop-loss below $330. Target $340 first, then $345. If the price dips to $320, consider a bear put spread using GOOG20260116P320 and GOOG20260116P315 to hedge downside risk.

Volatility on the Horizon: Balancing Bullish Momentum and Regulatory Risks

The next 10 days will test GOOG’s resolve. A close above $340 could trigger a rally toward $350, but a breakdown below $320 would invite short-term pain. The key is to stay nimble—use the options chain to lock in directional bets while keeping an eye on the EU and SEC investigations. This isn’t a binary call; it’s a dance between momentum and caution. And right now, the floor is tilted toward bulls.