Alphabet (GOOGL) Options Signal $320–$330 Bullish Battle: How to Play the AI Chip Breakout

• GOOGL trades at $315.94, down 1.15% after opening at $322.20
• Call open interest dominates at $320–$330 strikes, while puts cluster at $280 and $250
• Block trades hint at big money bets on AI-driven upside, with $260 call and $235 put activity

Here’s the takeaway: options market sentiment and technicals align for a bullish breakout—but the stock’s pullback today creates a high-probability entry for traders ready to capitalize on Alphabet’s AI-driven momentum. Let’s break down why this $320–$330 range could be the next battleground.

The Call-Put Imbalance and Whale Moves Point to a Bullish Setup

The options chain tells a clear story: traders are piling into calls at $320, $325, and $330 (expiring this Friday), with open interest of 17,973, 12,960, and 7,212 contracts respectively. These strikes form a tight cluster just above the current price, suggesting a consensus that GOOGL will rebound from its intraday low of $314.71. Meanwhile, puts at $280 ($20,857 OI) and $250 ($11,317 OI) are further out, indicating downside risk is seen as remote unless the stock cracks below $310.

But it’s the block trades that catch the eye. A GOOGL20251219C260 call was bought in bulk (1,000 contracts) ahead of the Dec 19 expiry, while a GOOGL20260320P235 put was added as a hedge. These moves signal big players are positioning for a near-term rebound while hedging against a deeper correction. The $260 call, in particular, becomes a key level to watch—its $13.55 million turnover suggests confidence in a rebound to at least $270.

AI Chip News Fuels the Bull Case—But Risks Remain

Alphabet’s recent headlines about its TPU chips are no accident. Analysts projecting a $900 billion market for TPUs and Meta’s rumored TPU deal have investors salivating. Guggenheim’s $375 price target isn’t just optimism—it’s math. But here’s the catch: RSI at 70.76 is in overbought territory, and the stock’s 30-day support at $277.52 is now 38% below current levels. A breakout above $322.36 (today’s high) would validate the bullish case, but a close below $314.71 could trigger a retest of the 200-day MA at $204.02. The market isn’t pricing in that risk yet, but the $250 put OI suggests some are preparing for it.

Actionable Trades: Calls for the Breakout, Puts for the Safety Net

For options traders, the GOOGL20251205C320 call (expiring this Friday) offers a high-velocity play. At $315.94, the stock needs a 1.3% move to hit breakeven by expiry—plausible given the AI hype. If you prefer a longer timeline, the GOOGL20251212C330 call (next Friday) requires a 4.5% move but offers higher reward if the stock surges. For downside protection, the GOOGL20251205P280 put (20,857 OI) is a cheap insurance policy if the stock dips below $310.

Stock buyers should target an entry near $310–$312, a zone where the 30-day support ($277.52) and 200-day MA ($204.02) diverge. A close above $322.36 would validate the bullish case, with $330 as the first target. If the stock fails to hold $314.71, consider trimming positions and shifting to the GOOGL20251212P310 put (4,113 OI) for a safer play.

Volatility on the Horizon: Ride the AI Wave—But Stay Grounded

Alphabet’s options market is a microcosm of the broader AI narrative: bullish on the upside, cautious on the downside. The coming weeks will test whether the stock can sustain its momentum against a backdrop of overbought indicators and a volatile macro environment. For now, the $320–$330 range is the sweet spot—where AI hype meets actionable opportunity. As always, keep your stops tight and your eyes on the news flow. The next chapter for GOOGL could be its most eventful yet.