Alphabet (GOOG) Options Signal Bullish Bias: Key Strikes and Trade Setups for Jan 16, 2026

• Current Price Action: GOOG trades at $330.48, down 0.8% from its intraday high of $335.24.
• Options Imbalance: Call open interest (1.11M) outpaces puts (908K), with a put/call ratio of 0.818.
• Key Catalysts: AI-driven cloud growth, $155B cloud backlog, and a $0.21 quarterly dividend.

Here’s the takeaway: options data and technicals hint at a bullish bias, but overbought momentum and a bearish engulfing candle warn of near-term volatility. Let’s break it down.

What the Options Chain Reveals About Market Sentiment

The options market is betting on a directional move—just not a symmetric one. For this Friday’s expirations, calls at $340 (OI: 15,480) and $350 (OI: 25,015) dominate, while puts are skewed to extreme downside levels like $165 (OI: 18,500). This suggests investors are hedging against a sharp crash rather than pricing in a moderate pullback.

But here’s the twist: The next Friday’s options show calls at $335 (OI: 8,047) gaining traction. That strike is just above today’s price, implying some traders expect a rebound off current support levels. Meanwhile, a block trade of GOOG20260220P310 (2,000 puts expiring Feb 20) adds intrigue—could it be a hedge against a mid-February earnings miss?

News Flow: Fuel for the Bull Case

Alphabet’s AI and cloud momentum is hard to ignore. The $155B cloud backlog and Gemini AI integration into core services are revenue accelerants. The recent dividend initiation also signals confidence in cash flow, which could attract income-focused investors.

But don’t overlook the director’s $202K stock sale. While not a massive red flag, it’s a reminder that insiders sometimes act on non-public concerns. Still, the broader narrative—AI outperforming rivals, TPU chip adoption, and strong ad revenue—overrides short-term noise.

Actionable Trade Ideas for Today

1. Options Play: Buy GOOG20260116C340 (this Friday’s $340 call). Rationale: The strike sits at the 30D resistance level (315.71–315.94) plus MACD divergence. If GOOG breaks above $335 (middle Bollinger Band), this call could catch a rally toward $340.

1. Stock Entry: Consider buying GOOG near $329.50 (intraday low) if it holds above the 200D support (313.65–317.45). Target: $337.50 (aligns with 30D MA and RSI overbought correction).

1. Bearish Hedge: Sell GOOG20260123P327.5 (next Friday’s $327.5 put) if price dips below $329. The strike is the most liquid put for next week and offers downside protection if the bearish engulfing pattern plays out.

Volatility on the Horizon

Alphabet’s story is a classic "long-term bull, short-term whipsaw." The technicals and options data agree: a rebound is likely, but don’t chase the move. Watch the $335 level like a hawk—it’s the first hurdle between current price and the $340 call-heavy zone.

If the AI/cloud narrative holds, GOOG could retest its 52-week high by mid-February. But if the RSI (currently at 76) corrects sharply, expect a test of the $318.71 middle Bollinger Band. Either way, the options market has already priced in extremes—so the real money might be in the middle ground.