Alphabet (GOOGL) Options Signal $320 Bullish Bias Amid Energy Play – Here’s How to Position for the AI Power Play

• Current Price Action: GOOGL trades at $313.32, down 0.33% from its 52-week high of $315.08. Volume spikes to 2.76M shares, hinting at short-term volatility.
• Options Imbalance: Call open interest dominates at $320 (9,792 contracts) vs. puts at $312.5 (7,731), signaling a near-term bullish bias.
• Block Trade Alert: A $2.54M put block at GOOGL20260116P240 and a $1.35M call buy at GOOGL20251219C260 suggest institutional positioning for January 2026.

The Core Insight: GOOGL’s options market is painting a clear picture: bulls are stacking up at $320, while bears are hedging below $312.5. With the stock perched near its 30D support/resistance zone ($319.68–$320.62), today’s $313.32 price could be a setup for a breakout—or a trap. Let’s break it down.Bullish Pressure at $320, Bearish Caution Below $312.5

The options chain is a goldmine of sentiment. For this Friday’s expiration, GOOGL20251226C320 (9,792 OI) and GOOGL20251226P312.5 (7,731 OI) are the most watched strikes. This 1.26x call/put ratio at these levels suggests traders expect a push toward $320 before year-end. But don’t ignore the bearish block trades: the GOOGL20260116P240 put (2,000 contracts) at $240 strike price—a 20% downside—hints at long-term hedging by big players. Meanwhile, the $320 call OI next week (7,477) shows lingering bullish conviction. The risk? If the stock fails to hold above $311.92 (today’s low), the $310–$305 put OI could trigger a selloff.

Energy Acquisition Fuels Bullish Narrative

Alphabet’s $4.75B Intersect buyout isn’t just a headline—it’s a strategic move to solve energy bottlenecks for AI/data centers. This ties directly to GOOGL’s long-term growth story. Investors are betting the acquisition will unlock efficiency in power sourcing, which could drive revenue growth. But here’s the catch: the deal closes in early 2026, so near-term gains depend on market confidence in Alphabet’s execution. The options data aligns with this optimism—calls at $320+ reflect expectations of a post-announcement pop. However, if grid delays persist or integration stumbles, the $312.5 support level (current 20D moving average) could crumble.

Trade Ideas: Calls for Breakouts, Puts for Hedging

• Options Play: Buy GOOGL20260102C320 (next Friday’s $320 call) if GOOGL breaks above $315. The $320 strike is a psychological hurdle with heavy OI, and a close above $315 would validate bullish momentum. Target $325–$330 for a 7–14% gain.
• Stock Entry: Consider buying GOOGL near $312 if it holds above $311.92. A rebound here could test the $319.68 resistance, with a potential target at $325. Stop-loss below $310.
• Bearish Hedge: Sell GOOGL20260102P310 (next Friday’s $310 put) if the stock dips below $312.5. The $310–$305 put OI suggests a possible short-term floor, but don’t bet heavily—long-term bulls are still in control.

Volatility on the Horizon

Alphabet’s options market is a tug-of-war between near-term bulls ($320 calls) and long-term hedges ($240 puts). The Intersect deal adds fuel to the bullish fire, but grid challenges remain a wildcard. For now, the stock’s technical setup—bullish engulfing pattern, 30D MA at $305.79—favors a push toward $320. If you’re in, lock in partial profits at $325. If you’re out, watch the $310 level like a hawk. Either way, this is a stock where energy infrastructure meets AI ambition—and the options are pricing in a big move.