Alphabet (GOOG) Options Signal Bullish Bias: Target $340+ Breakout with Caution on Overbought Levels

• GOOG trades at $335.3, down 0.34% from $336.43, but sits above 30D/100D/200D moving averages
• Options market shows 0.82 Put/Call OI ratio (calls dominate), with heavy call OI at $340–$360 strikes
• AI partnerships with Apple, Walmart, and Nvidia drive $370+ price target from analysts

Here’s the core insight: GOOG’s options activity and technicals align for a bullish breakout above $340, but overbought momentum (RSI at 86) warns of a short-term pullback. Let’s unpack why this trade setup is both exciting and nuanced.

Bullish OI Clusters and Hidden Risks in the Options Chain

Take a look at the call-heavy options landscape: 25,645 open contracts at the $350 strike (this Friday’s expiry) and 3,230 at $342.5 (next Friday). That’s not just noise—it’s a crowd betting on a $340+ move. The puts aren’t ignored, though: 14,991 OI at $320 suggests some hedging against a drop below 315–317 (200D support).

But here’s the catch: RSI at 86 screams overbought, and Bollinger Bands show the price is near the upper band. Think of it like a coiled spring—GOOG could snap back to test the middle band ($316) if buyers fade. The block trade at GOOG20260417P300 (600 puts) adds intrigue. While the direction is unknown, it hints at institutional caution for a longer-term play.

AI News as Fuel for the Bull Case

Alphabet’s recent headlines are a goldmine for bulls. A $1B Apple deal, Gemini 3’s AI dominance, and Blackwell-powered cloud infrastructure aren’t just buzzwords—they’re revenue drivers. Analysts like Justin Post ($370 target) and Mark Mahaney (20%+ EPS growth) aren’t just cheerleading; they’re pointing to concrete monetization paths.

Yet, investor perception matters. If the market starts pricing in “AI hype” rather than earnings, volatility could spike. That’s where the options data shines—it’s not just about the news, but how traders are positioning for it.

Actionable Trade Ideas: Calls, Puts, and Stock Entries

For options traders: Buy GOOG20260116C340 (this Friday’s $340 call) or GOOG20260123C342.5 (next Friday’s $342.5 call). Why? The stock is already testing $336.19 (intraday high), and a break above $340 could trigger a rush to cover those heavy OI strikes. For downside protection, GOOG20260123P327.5 (next Friday’s $327.5 put) offers a safety net if the RSI correction hits.

Stock traders: Consider entry near $331 (intraday low) if support holds. Target $340–$345 if the bulls take control, but watch the 315–317 support zone. If the price breaks below $331, tighten stops to $325.

Volatility on the Horizon: Balancing Optimism and Caution

Alphabet’s story is far from over. The AI partnerships and cloud expansion are tailwinds, but technical indicators warn of a possible breather. This isn’t a “sell the news” scenario—it’s a “trade the bounce.” Position yourself to ride the momentum if the bulls hold the $315 line, but don’t ignore the risk of a short-term profit-taking dip.

Bottom line: GOOG is a high-conviction trade for the next 1–2 weeks, with options offering both leverage and protection. Stay nimble, and let the data guide your next move.