Alphabet (GOOG) Options Signal Bullish Bias: Key Strikes and Block Trades Point to $320+ Upside Potential

• GOOG trades at $308.00, down 0.8% from $310.52, with a short-term bearish Kline pattern but long-term bullish moving averages.
• Options data shows heavy call open interest at $320 and $335 (this Friday’s exp) vs. puts at $290, signaling a bullish skew.
• Block trades hint at institutional activity, while J.P. Morgan’s $385 price target and quantum computing news add catalysts.

Here’s the core insight: options market sentiment and technicals align for a bullish rebound, but near-term volatility could test key levels. Let’s break it down.

What the Options Chain Reveals About Market Sentiment

The options chain is a treasure map of where traders are placing their bets. For this Friday’s expiration (Dec 19), the GOOG20251219C320 call option dominates with 12,715 open contracts—nearly double the next strike. This suggests a strong belief the stock could reclaim $320+ territory. The next big call is at $335 (8,224 OI), while puts at $290 ($7,327 OI) and $285 ($6,734 OI) show defensive positioning.

The put/call ratio of 0.737 (favoring calls) reinforces this bullish tilt. But don’t ignore the risks: if GOOG dips below the 30D support at $284.45, those puts could ignite a short-term selloff. Block trades like the GOOG20251219C235 (800 contracts, $1.42M turnover) hint at institutional players hedging or scaling up positions, though their exact strategy remains unclear.

News Flow: Quantum Leaps and Mixed Signals

Google’s quantum computing breakthroughs and Microsoft/Western Digital partnerships are huge for long-term growth narratives. J.P. Morgan’s $385 target (21% upside) adds fuel to the fire. But here’s the catch: insider sales by Pichai and others, plus China Universal’s 18.8% stake reduction, could weigh on short-term confidence. The dividend announcement is a positive for income seekers, but with a yield of just 0.3%, it’s not a game-changer.

Investor perception will hinge on whether the market views these insider sales as profit-taking or a lack of conviction. For now, the bullish options flow and analyst upgrades seem to outweigh the bearish noise.

Actionable Trade Ideas: Calls for the Brave, Puts for the Cautious

For options traders, the most compelling setup is the GOOG20251219C320 call. If GOOG breaks above its Bollinger Upper Band ($338.73) or the 30D MA ($300.83), this strike could see explosive gains before Friday’s close. A secondary play: the GOOG20251226C335 (next Friday’s exp) for a longer timeline if the rebound is gradual.

For stock traders, consider entries near $307.24 (intraday low) if support holds, with a target at $320. A break below $300 (middle Bollinger Band) would shift the script—use the GOOG20251219P290 put as insurance if you’re holding long positions.

Volatility on the Horizon: Balancing Bullish Momentum and Near-Term Risks

The technicals and options data tell a clear story: traders are pricing in a rebound. But don’t ignore the crosscurrents. High call open interest at $320+ could create a self-fulfilling prophecy if buying pressure kicks in. Conversely, a failure to hold above $300 could trigger a cascade of puts.

Your best bet? Stay nimble. Use the $320 call for aggressive upside, the $290 put for downside protection, and watch the Bollinger Bands like a hawk. The next 72 hours will tell us if this is a short-covering rally or the start of something bigger.