Alphabet (GOOG) Options Signal Deep Put Pressure at $285–$295: Is a Rebound to $340+ Brewing?

• Put open interest dominates at $285–$295, while calls peak at $340 and $330 ahead of Friday’s expiry.
• Block trades hint at bullish positioning in older-dated calls, despite today’s 2.5% price drop.
• RSI near overbought 80.5 and 30D MA at $293.45 suggest a potential rebound if support holds.

Here’s the takeaway: GOOG’s options market is bearish at the edges but bullish at the core. While deep puts signal fear of a selloff, heavy call open interest and recent earnings surprises point to a possible rebound. Let’s break it down.

"Put Pressure vs. Call Optimism: Where the Money Is Flowing"

The options chain tells a split story. For this Friday’s expiry, puts at $285 ($OI: 10,251) and $295 ($OI: 3,952) dominate, suggesting traders are bracing for a sharp drop. But calls at $340 ($OI: 8,039) and $345 ($OI: 3,052) show lingering optimism about a rebound to pre-December levels. The put/call ratio of 0.745 (favoring calls) adds nuance—markets are hedging downside but not abandoning bullish bets entirely.

Block trades add intrigue. A $1.14M purchase of GOOG20250919C235 and GOOG20250919C245 (both expiring Sept 19) hints at long-term bullish positioning. These older-dated contracts suggest institutional players are locking in exposure for a potential 2026 rally, despite near-term volatility.

"Fundamentals vs. Fear: Why the Disconnect Matters"

Alphabet’s Q3 earnings ($2.87/share) and $102.35B revenue beat expectations, with AI/cloud growth cited by 11 analysts as a key driver. Institutional investors added $28B to GOOG holdings in Q3, and 186 hedge funds now own the stock. Yet today’s price action (down 2.5% to $313.84) and deep put buying imply short-term profit-taking or macroeconomic jitters.

This tension creates an opportunity. If the stock holds above its 30D support ($284.50) and Bollinger Middle Band ($301.67), the bullish case strengthens. But a break below $285 could trigger a test of the 200D MA at $164.29—a tail-risk scenario.

"Trade Ideas: Calls for Rebound, Puts for Protection"

For options traders:

• Buy GOOG20251219C320 (Dec 19 expiry, $320 strike) if GOOG holds above $311.91 (intraday low). Target: $340 (current call OI peak).
• Sell put spreads at $295/$285 to capitalize on deep put demand while capping risk.

For stock:

• Entry near $313 if GOOG rebounds off the Bollinger Middle Band. Target: 30D MA at $293.45 (bullish) or 200D MA at $206.49 (bearish).
• Stop-loss below $301.67 to protect against a breakdown.

"Volatility on the Horizon: Balancing Risk and Reward"

Alphabet’s RSI at 80.5 hints at overbought conditions, but its 30D MA crossover (bullish) and MACD histogram (positive divergence) suggest momentum isn’t dying yet. The key question: Will the $285–$295 put wall act as a floor, or will it collapse under selling pressure?

For now, the data favors a cautious bullish bias. But with puts guarding the downside and block trades hinting at long-term bets, this is a stock to watch—and trade—with both eyes open.