Alphabet (GOOGL) Options Signal $320–$335 Bullish Play Amid AI Chip Hype – Here’s How to Position

• GOOGL trades at $317.15, down 0.78% from its intraday high of $322.36
• Call open interest dominates at $320–$335 strikes, with 17,973 contracts at $320
• Block trades hint at big money bets on AI-driven growth, including 1,000 calls bought at $260

Here’s the takeaway: GOOGL’s options market is painting a clear picture—investors are pricing in a potential rebound above $320, fueled by AI chip optimism. But with RSI near overbought levels and a volatile session ahead, timing matters. Let’s break it down.Bullish Pressure at $320–$335, But Puts Warn of Caution

The options chain shows a striking imbalance: this Friday’s top call strikes ($320, $325, $330) have combined 47,093 open contracts, while puts at $280 ($250) trail with 20,857 and 11,317. That’s a put/call ratio of 0.44 for near-term expiries—a classic bullish skew. But don’t ignore the puts: the $280 strike’s massive open interest (20,857) acts like a shadow support level. If the stock dips below $315, that could trigger a test of the $280 floor.

Block trades add intrigue. A 1,000-lot buy of GOOGL20251219C260 (expiring Friday) suggests smart money is hedging a short-term bounce. Meanwhile, two $240 put trades (GOOGL20260116P240) with 2,550 total contracts hint at long-term downside protection bets. These aren’t just noise—they’re clues about where big players think the $13B TPU revenue story might shake out.

AI Chip Hype Justifies the Bull Case—For Now

Alphabet’s tensor processing unit (TPU) deals with Anthropic and Meta aren’t just headlines. Morgan Stanley’s $13B 2027 revenue projection for TPUs could justify a premium multiple, especially if Google Cloud’s AI infrastructure gains traction. But here’s the catch: the market already priced in part of this story. GOOGL’s 0.65% premarket pop last week shows enthusiasm, but the stock’s 70.76 RSI suggests near-term profit-taking is likely. Think of it like a sprinter leaning forward at the starting line—energy is there, but the blocks need to stay solid.

Trade Ideas: Calls for the Bold, Dips for the Patient

For options traders: GOOGL20251212C320 (next Friday’s $320 call) offers a tight risk-reward setup. At today’s $317.15 price, a $320 entry gives you 0.9% buffer above current levels. If the stock holds above its 30D support ($277.52) and breaks $322.5 (a key call open interest cluster), this contract could double. For the more conservative: GOOGL20251212C317.5 (2314 OI) offers a cheaper ride with a 1.1% buffer.

Stock buyers: Consider entries near $315 if the price holds above its 200D MA ($204.02). A close above $322.5 would validate the bullish case, with initial targets at $330 (100D MA + 15%) and $340 (Bollinger Upper Band). But watch the $314.71 intraday low—if it breaks, re-evaluate.

Volatility on the Horizon: Ride the AI Wave or Ride It Out?

Alphabet’s options market is a seesaw between AI optimism and technical caution. The $320–$335 call cluster suggests a breakout trade, but the $280 put wall warns of a potential 10% drop if sentiment shifts. With block trades hinting at both bullish and bearish positioning, this isn’t a one-size-fits-all play. If you’re in, keep stops tight. If you’re out, patience is your friend—this stock’s next move could hinge on a single AI partnership announcement.