Alphabet (GOOG) Options Signal Bullish Bias: Key Strike Levels and Trade Setups for Dec 12–19 Expirations

• Current price: $319.31, up 0.49% intraday with volume at 7.6M shares.
• Options data: Call open interest (OI) dominates, especially at $340 and $320 strikes expiring Dec 12.
• News highlights: $10B buyback, AI-driven ad platform, and EU regulatory risks in focus.

Here’s the core insight: Options market sentiment leans bullish, but short-term volatility from regulatory news could create sharp swings. The stock shows upside potential if it breaks above $320, but watch for a pullback test of $315 support.

What the Options Chain Reveals About Market Sentiment

The options market is clearly leaning bullish. For this Friday’s expirations (Dec 12), the GOOG20251212C340 call has 17,244 open contracts—the highest of any strike. That’s a red flag for a potential short-term rally. Meanwhile, the GOOG20251212P285 put leads puts with 10,211 OI, suggesting some hedging against a drop below $300.

But here’s the twist: The put/call ratio for open interest is just 0.75, meaning calls dominate. That’s classic “rally ahead” behavior. However, the block trades tell a mixed story. A recent 800-lot buy of the GOOG20250919C245 call (expiring in September 2025) hints at long-term bullish bets, while the $3.2B EU fine could pressure near-term sentiment.

How News and Fundamentals Fit Into the Picture

Alphabet’s Q4 earnings were a mixed bag. The $70.5B revenue beat and $10B buyback are tailwinds, but the EU fine and California data privacy lawsuit add headwinds. The AI-powered ad platform and Microsoft partnership are strong catalysts for growth, but regulatory risks could cap short-term gains.

Investor perception is split: The stock surged 7% after the earnings report but dropped 5% later due to EU concerns. This tug-of-war means the price could stay range-bound until the $338 Bollinger Band upper level or test the $271 lower band if the EU issues escalate.

Actionable Trade Ideas for Today

For options traders, the most compelling setup is the GOOG20251212C320 call (Dec 12 expiry). With 7,418 OI and the stock trading near $319, this strike has a high probability of in-the-money expiration if the stock holds above $315. A tighter play is the GOOG20251219C325 call (next Friday expiry), which could benefit from a post-EU-ruling bounce.

For stock traders, consider these levels:

• Entry: Buy GOOG near $316–$318 if the 30D support at $284 holds.
• Target: Aim for $330 if the stock breaks above the 30D MA ($296.84) and clears $320.
• Stop-loss: Exit below $315 to avoid a test of the $300 psychological level.

Volatility on the Horizon

The next 10 days will be critical. If Alphabet’s stock holds above $315, the $320–$340 call strikes could drive a breakout. But if the EU fine triggers a sell-off, the GOOG20251212P317.5 put (7,153 OI) might see action. Either way, the options market is pricing in a 10% move by Dec 19—so position sizing matters.

Bottom line: This is a stock at a crossroads. The fundamentals are strong, but near-term regulatory risks add noise. For traders, the key is to play the options liquidity hotspots—like the $320 call—while keeping a tight stop below $315. If you’re bullish on AI’s long-term impact, the GOOG20251219C335 call offers a safer, longer-dated bet.