Alphabet (GOOG) Options Signal Bullish Momentum: Key Call Strikes and AI-Driven Trade Setup

• GOOG surges 1.08% to $321.85, breaking above 30D support at $285.
• Call open interest dominates at $330 and $325 strikes, with a put/call ratio of 0.74 (bullish skew).
• Block trades in call options and AI chip news suggest institutional optimism about Alphabet’s semiconductor push.

Here’s the core insight: options market sentiment and technicals align for a bullish breakout. GOOG’s price action, coupled with heavy call buying at key strikes, points to a high-probability upside move. But let’s dig into why this matters—and how to position for it.

Bullish Imbalance in Call Open Interest and Block Trade Clues

The options chain tells a clear story: traders are betting on a rally. For this Friday’s expiration, $330 calls (OI: 8,280) and $325 calls (OI: 7,739) dominate, while $315 puts (OI: 9,539) are the largest bearish bet. The put/call ratio of 0.74 (calls > puts) reinforces a net bullish stance.

But it’s the block trades that catch the eye. A recent GOOG20251003C250 call block (800 contracts) and GOOG20250919C245 buy (800 contracts) suggest institutional players are hedging or scaling up positions ahead of key AI-related catalysts. These trades often precede price moves—especially when aligned with technical levels like the 30D support at $285.

AI Chips and Regulatory Risks: How News Shapes the Narrative

Alphabet’s AI chip strategy is the elephant in the room. Recent headlines praise Gemini 3 and Tensor Processing Units (TPUs) as potential multi-billion-dollar growth drivers. This narrative is reshaping investor perceptions, pushing GOOG’s valuation above peers like Microsoft and Nvidia.

Yet, the Seeking Alpha downgrade and Waymo’s regulatory scrutiny add friction. The stock’s 84% annual surge has priced in much of the easy money, but the AI-driven cloud backlog and TPUs still offer catalysts. The key question: Can Alphabet’s hardware ambitions offset antitrust risks and Waymo’s legal hurdles? For now, the options market assumes they can.

Actionable Trade Ideas: Calls, Puts, and Price Targets

For options traders, the $330 call (expiring this Friday) is a high-conviction play. If GOOG breaks above its intraday high of $323.83, this strike could see rapid premium gains. For a safer bet, consider a bull call spread using the $325 call (OI: 7,739) and $330 call (OI: 8,280) to cap risk while capitalizing on a potential $325–$335 rally.

Stock traders should watch the $318.39 previous close as a critical support level. A retest here could offer a low-risk entry if the price holds. Target $325 as a near-term goal, with a longer-term eye on the $330–$332.5 resistance cluster.

For bearish hedges, the $315 put (OI: 9,539) is a liquid option if the stock stumbles below $320. But given the bullish technicals and AI-driven optimism, this seems like a defensive play rather than a core position.

Volatility on the Horizon: Balancing AI Optimism with Regulatory Risks

The next few weeks will test GOOG’s momentum. A breakout above $325 could validate the bullish case, while a drop below $318.39 might reignite bearish sentiment. The key is to stay nimble: use the $325 call for upside exposure and the $315 put as a hedge.

In the end, Alphabet’s AI chips are the wildcard. If Gemini 3 and TPUs deliver on their promise, GOOG could outperform its valuation. But if regulatory or execution risks materialize, the stock’s 84% annual gain might feel like a bubble. For now, the data says: the bulls are in control—but don’t ignore the risks.