Alphabet (GOOG) Options Signal Bullish Momentum: Key Call Strikes and Trade Setups for Dec 26 Expiry

• GOOG surges 1.5% to $316.02, trading near 30-day support/resistance at $319.90
• Call open interest dominates with 13415 contracts at $320 strike (Dec 26 expiry)
• Block trades show $1.1M+ call buying in September/October 2025 contracts

The options market is painting a clear picture: traders are betting big on Alphabet’s upside. With call open interest outpacing puts by 38% and key resistance levels in focus, today’s $316 price action suggests a potential breakout is brewing. Let’s break down what this means for your trading desk.

Call OI Clusters and Whale Moves: What the Options Chain Reveals

The call/put open interest ratio of 0.72 (calls: 1.01M, puts: 732K) tells us institutional money is leaning bullish. Specifically, the $320 strike (GOOG20251226C320) has 13,415 contracts outstanding for Friday expiry—nearly double the next strike. This suggests smart money is positioning for a push above the 30-day resistance band ($319.90–$320.84).

But don’t ignore the risks. While the RSI (46.15) isn’t overbought, the MACD histogram (-2.75) shows momentum slowing. If GOOG fails to break $320, the Bollinger Band lower bound at $301.17 becomes a critical support level. Notably, block trades like GOOG20250919C235 ($1.13M volume) indicate big players are hedging long-term AI/cloud bets—positions that could force covering if the stock dips.

News-Driven Catalysts: How Alphabet’s Moves Fuel the Bull Case

Alphabet’s recent $4.75B Intersect acquisition isn’t just about data centers—it’s about securing energy for AI’s insatiable appetite. This dovetails with Nasdaq analysts’ 5-year $350 price target and Citigroup’s upgraded $350 PT. The $10B security deal with Palo Alto Networks adds another layer of enterprise credibility, while the lawsuit against SerpApi reinforces Google’s IP moat.

However, the New York Times copyright case introduces a wildcard. While unlikely to derail the stock’s AI narrative, a negative ruling could trigger short-term volatility. The key here is volume: if GOOG’s 9M+ daily volume holds above $310.75, the bull case remains intact.

Actionable Trade Setups: Calls, Puts, and Price Levels to Watch

For options traders, the GOOG20251226C320 call (Dec 26 expiry) offers a high-probability play. With the stock trading at $316.02, this $4 strike is just 1.2% out of the money but sits directly under the 30-day resistance cluster. If you prefer a calendar spread, the GOOG20260102C322.5 (next Friday expiry) has 12,832 contracts and could benefit from a post-holiday buying surge.

Stock buyers should consider entry near $319.90 if the 30-day support holds. Set a stop-loss below $310.75 (today’s intraday low) and target $325–$330, where the 200-day moving average ($213.96) becomes irrelevant. For bears, a put spread between GOOG20251226P300 and GOOG20251226P290 could profit if the stock gaps down pre-earnings.

Volatility on the Horizon: Positioning for Q1 2026

Alphabet’s options activity and news flow align with a bullish bias through early 2026. The key will be maintaining volume above $310.75 and watching the $320–$325 strike range for a breakout. With AI infrastructure spending expected to surge and energy deals like Intersect closing in early 2026, the technicals and fundamentals are in sync—provided the legal risks stay contained. For now, the call-heavy options chain and institutional block trades suggest this is a stock to own, not short.