Alphabet (GOOG) Options Signal Bullish Bias: Key Strike Levels and Trade Setups for Dec 19–26

• GOOG surges 2.1% today, trading at $304.33 amid a short-term bearish candlestick pattern and long-term bullish moving averages.
• Options data shows a 0.73 put/call open interest ratio, with heavy call buying at the $320 strike and defensive puts at $290.
• Block trades hint at institutional positioning, including a $1.14M call block at the $235 strike expiring Sept 19.

Here’s the takeaway: upside potential is strong if GOOG holds above $300, but near-term volatility could test support levels. Let’s break down why the options market is leaning bullish—and where the risks lie.

What the Options Chain Reveals About Market Sentiment

The options market is clearly leaning bullish. For Friday’s expiration (Dec 19), the GOOG20251219C320 call has 17,101 open contracts—the highest of any strike. That’s a red flag for aggressive buyers eyeing a push above $320. Meanwhile, puts at $290 (9,690 OI) and $295 (9,156 OI) suggest traders are hedging against a drop below $300.

But here’s the twist: the bearish engulfing pattern on the daily chart clashes with the long-term bullish 200-day MA ($211.96) and Bollinger Bands. If GOOG can’t hold above $300, those puts might get exercised. The block trades—like the 800-contract GOOG20250919C235 block—also hint at off-market positioning, but their older expirations mean they’re less relevant for near-term guidance.

How News and Fundamentals Fit Into the Narrative

Alphabet’s pre-market drop (3.14% on Dec 18) was tied to macroeconomic jitters, not earnings misses. Q3 beat estimates handily ($2.87 EPS vs. $2.29 expected), and analysts still have a $313 price target. The challenge? Investors are rotating out of overvalued tech stocks ahead of Fed rate decisions.

This creates a tug-of-war: fundamentals are solid, but sentiment is fragile. If inflation fears ease next week, the $313 target could feel optimistic. But if the Fed signals tighter policy, those $290 puts might get a workout.

Actionable Trade Ideas for Today and Tomorrow

For options traders, the most compelling setup is the GOOG20251219C320 call expiring this Friday. Why? High open interest means liquidity, and a break above $320 would trigger a cascade of stop-loss orders. If you’re bullish but cautious, pair it with a GOOG20251219P290 put for downside protection.

For stock traders, consider entering near $304 if GOOG holds above its 30-day MA ($303.20). A breakout above $312.50 (middle Bollinger Band) could target $320–$330. Conversely, a drop below $300.63 (intraday low) would signal a test of the $292.53 Bollinger support.

A more structured approach: sell a bear call spread with the GOOG20251226C315 and GOOG20251226C330 strikes for next Friday. The high open interest at $315 ($4,976 OI) and $330 ($2,352 OI) suggests a tight trading range is likely.

Volatility on the Horizon

The next 72 hours will be critical. If GOOG closes above $312.50, the bullish case strengthens—and those $320 calls could take off. But a close below $300 would validate the bearish engulfing pattern, turning the $290–$295 support zone into a battleground. Either way, the options market is pricing in a directional move. Stay nimble, and let the data guide your next play.