Alphabet (GOOG) Options Signal Bullish Bias: Target $320 Breakout as Short-Term Bearish Pressure Fades

• GOOG trades at $303.28, up 1.75% today, with a bearish engulfing pattern and oversold RSI (29.3) hinting at potential rebound.
• Call open interest dominates at $320 (OI: 17,101) and $315 (OI: 8,392) for Friday expiration, while puts cluster at $290 (OI: 9,690).
• Block trades show $1.1M+ in call volume for September and October expirations, suggesting institutional positioning ahead of key catalysts.

The options market is whispering a breakout story: Despite a short-term bearish candlestick and MACD bearish crossover, the heavy call open interest at $320 and $315—combined with a put/call ratio of 0.73—points to a structural bias toward upside. This isn’t just noise—it’s a setup.What the Options Chain Reveals About Market Sentiment

Let’s start with the numbers. For Friday’s expiration, the top OTM call at $320 has 17,101 open contracts, nearly double the next strike. That’s not accidental—it’s a crowd-sourced price target. Meanwhile, puts at $290 and $295 have 9,690 and 9,156 OI respectively, anchoring a support zone just below current levels.

The block trades add intrigue. A $1.1M+ call trade for the GOOG20250919C235 and GOOG20251003C250 options suggests big players are hedging or positioning for a late-2025 move. But here’s the catch: The bearish engulfing pattern and RSI near oversold levels mean a rebound could be imminent. If the price holds above $300.63 (today’s low), the $320 call strikes could become a magnet.

News Flow: Caution vs. Conviction

The pre-market drop (3.14%) was driven by macroeconomic jitters, not fundamental cracks. Alphabet’s Q3 beat—$2.87 EPS vs. $2.29 expected—proves the core business remains sturdy. The shareholder investigation by Halper Sadeh LLC adds noise but no immediate threat. What really matters is the AI arms race: Nvidia’s dominance is being challenged by Google’s software-first strategy, a narrative that could fuel long-term call buying.

Actionable Trading Setups

For options traders, the GOOG20251219C320 (Friday expiration) is a high-conviction play if the price breaks above today’s high of $305.26. The $320 strike has enough OI to act as a self-fulfilling prophecy. For a safer bet, consider a call spread between $315 and $320, capping risk while leveraging the crowded strike zone.

Stock traders should watch the $300.63 support level. If it holds, consider entries near $300–$302 with a target at $315 (aligned with the 30D moving average). A breakdown below $292.53 (lower Bollinger Band) would flip the script, making the GOOG20251219P290 put a defensive play.

Volatility on the Horizon

This is a stock at a crossroads. The short-term technicals scream for a rebound, while the long-term bullish thesis (AI, ad revenue resilience) remains intact. The key is timing: If GOOG closes above $305 today, the $320 call strikes could ignite a rally. But if macroeconomic fears resurface, the $290–$295 support zone will be critical. Either way, the options market has already priced in a directional move—now it’s about execution.

One thing’s clear: This isn’t a stock to fade. Whether you’re buying calls, playing the bounce, or hedging with puts, the data points to a pivotal week. Stay close to the $300–$320 range—it’s where the action lives.