Alphabet (GOOG) Options Signal Bullish Bias: Key Strike Levels and Trade Setups for Jan 16–23 Expirations

• GOOG trades at $333.06, down 0.97% from its 52-week high but still above all major moving averages.
• Options market shows 32% more open interest in calls than puts, with heavy call buying at $340–$350 strikes.
• Analysts target $355 as a 12-month price, backed by Apple’s AI partnership and $4 trillion market cap milestone.
• RSI near overbought territory (83.8) suggests short-term volatility, but long-term MACD remains bullish.

The options market is whispering a clear message: bulls are in control, but caution is warranted near overbought levels.Bullish Sentiment Locked in Key Strikes

Options data tells a story of conviction. For this Friday’s expiration (Jan 16), the top OTM call strikes ($350, $340) have 25,464 and 14,826 open contracts respectively—nearly double the next call strikes. This suggests institutional players are hedging or speculating on a near-term pop above $340. Meanwhile, puts at $320 and $327.5 (next Friday’s expiration) show heavy open interest (14,706 and 10,676 contracts), indicating a psychological floor around $325–$330. The put/call ratio of 0.82 (calls dominate) reinforces the bullish tilt, but the RSI’s 83.8 reading warns of a potential pullback.

News Flow Fuels AI-Driven Optimism

Alphabet’s recent headlines are a goldmine for bulls. The Apple partnership (Gemini powering Siri) and Nvidia’s Blackwell AI infrastructure rollout validate its AI leadership. The $4 trillion market cap milestone—driven by these wins—has investors pricing in sustained dominance. However, insider selling by Pichai and others (32,500 shares sold at $321.21) adds a layer of caution. While this isn’t a red flag, it hints at liquidity needs or tempered optimism among top brass.

Actionable Trade Setups for Jan 16–23

For options traders:

• Bull Call Spread (Jan 16): Buy GOOG20260116C340 and sell GOOG20260116C350. The $340 strike is just below the 30D support/resistance range (314.94–315.71), and a break above Bollinger Upper ($338.03) could trigger a rally toward $345.
• Bear Put Spread (Jan 23): Buy GOOG20260123P327.5 and sell GOOG20260123P315. If GOOG dips below $331.29 (intraday low), the $327.5 strike offers downside protection.

For stock traders:

• Breakout Play: Enter long near $335 if GOOG closes above $338.03 (Bollinger Upper). Target $345 if the 30D MA (317.09) holds.
• Dip Buy: If price tests $325–$327.5 (put-heavy zone), consider entries at $327.5 with a stop below $320.

Volatility on the Horizon: Navigating Alphabet’s AI-Powered Ascent

Alphabet’s options activity and fundamentals align for a bullish bias, but the RSI’s overbought level and insider sales demand vigilance. The key is balancing aggression (calls at $340–$350) with risk management (puts at $327.5). With AI partnerships and GenAI ad growth as tailwinds, the $340–$355 range looks like a high-probability target—provided the stock doesn’t get caught in a short-term profit-taking selloff. Stay nimble, and let the options market’s conviction guide your entries.