Alphabet (GOOGL) Options Signal $300 Support Battle: Bull Call Spread vs. Put Hedge Play

• GOOGL surges 1.77% to $301.96, testing 30D support at $284.88 and 200D support at $166.15
• Options market shows 0.81 put/call OI imbalance, with heavy call OI at $335 and put OI at $290
• Block trade of 1,000 GOOGL20251219C260 calls bought Friday suggests near-term bullish positioning

Here's the play: GOOGL is dancing on a tightrope between oversold RSI (28.27) and bearish candlestick patterns. The options market is screaming about a critical $300 support level battle—let me show you why this is a setup worth watching.

The OI Chessboard: Where Smart Money is Betting

Options traders are stacking the deck with 24,354 open contracts at the $335 call (this Friday's expiry) and 22,351 puts at $290. That's like seeing a traffic jam at both ends of a bridge—you know something interesting is happening in the middle. The GOOGL20251219C260 block trade (1,000 contracts bought) adds intrigue: someone's willing to pay up for a $260 call in a stock trading at $302.

But don't ignore the bearish signals. That bearish engulfing candle and MACD crossing below signal line? They're warning signs. The RSI hovering near oversold territory means a rebound could be coming—but support at $290 isn't unbreakable. If that puts wall gets pierced, watch the $275-$280 level next.

News vs. Options: A Tale of Two Narratives

Iowa State Bank's 20% Q3 position boost is bullish, but it's fighting against Pichai's recent insider selling and that pre-market 3.14% drop. The market's rotating away from growth stocks, and GOOGL's $302 price is still 30% above its 200D MA. This creates a tension: fundamentals are okay, but valuations are fragile.

The block trades tell a mixed story too. While someone's buying near-term calls, those deep-out-of-the-money puts at $150 and $170 suggest some investors are hedging against a black swan. It's the financial markets version of buying insurance for a storm you're not sure will hit.

Trade Ideas: Bull Call Spread vs. Put Hedge

For options traders:

• Bull Call Spread: Buy GOOGL20251219C290 and sell GOOGL20251219C300. If price holds above $290, you capture the rebound with limited risk.
• Put Hedge: Buy GOOGL20251219P290 for downside protection. With 22k open contracts, this strike could act as a magnet if the $300 level breaks.

For stock players:

• Entry: Consider buying near $290 if support holds, with a stop below $285.
• Targets: First aim for $305 (retesting 30D MA), then $315 (breaking the bearish engulfing pattern).
• Alternative: Short-term traders could sell calls at $305 strike (Dec 19 expiry) if price action confirms a topping pattern.

Volatility on the Horizon

This week's action is setting up for a key decision point. The options market is pricing in a 20% move either way by December 19th, and those block trades suggest big players are positioning for both outcomes. With earnings season approaching and AI roadmap updates on the calendar, GOOGL could become a volatility magnet.

My read? The $300 level is make-or-break. If bulls hold it, we could see a sharp rebound into year-end. Break below $290, and the 200D MA becomes a gravitational pull. Either way, the options market has given us a roadmap—now it's time to pick your side of the trade.