Alphabet (GOOGL) Options Signal $320 Bullish Bias: Trade Setup for AI-Driven Breakout Amid Energy Play

• Alphabet (GOOGL) trades at $314.09, down 0.08% with volume surging to 9.8M shares.
• Options data shows heavy call open interest at the $320 strike, while block trades hint at institutional positioning.
• Alphabet’s $4.75B acquisition of energy firm Intersect fuels long-term AI infrastructure bets.

Here’s the core insight: options market sentiment and technicals align for a bullish breakout above $320, but short-term volatility could test near-term support. Let’s break it down.

Bullish Call OI at $320 vs. Defensive Puts at $312.5: A Battle for Control

The options chain tells a clear story. For this Friday’s expiration, call open interest peaks at the $320 strike (OI: 9,792), while next Friday’s chain shows similar concentration at $320 (OI: 7,477). This suggests a price target baked into the market’s collective mind. Meanwhile, puts at $312.5 (OI: 7,731) and $290 (OI: 6,124) act as a safety net for bears. The put/call ratio of 0.807 (calls dominate) reinforces the bullish tilt.

But don’t ignore the risks. The MACD histogram (-2.13) and RSI at 45.66 hint momentum is waning. If GOOGL fails to break above $320, short-term profit-taking could push it back toward the $311.92 intraday low. Block trades like GOOGL20260116P240 (2,000 puts at $240) and GOOGL20251219C260 (1,000 calls at $260) suggest whales are hedging or betting on a post-holiday rebound.

Intersect Acquisition: A Catalyst for AI-Driven Growth

Alphabet’s $4.75B grab of Intersect isn’t just a headline—it’s a strategic move to own energy infrastructure for AI. Sundar Pichai’s team now controls 10.8 gigawatts of power generation, bypassing grid bottlenecks. This aligns with Google Cloud’s 31.2% YoY revenue growth and a $91–93B capex plan. Analysts see this as a long-term play to outpace Amazon and Microsoft in AI scalability.

But here’s the catch: the market may not fully price this in until Q1 2026. The stock’s 64% YTD gain already reflects optimism, so near-term moves will hinge on execution risks (e.g., integration delays) and macro factors like interest rates.

Actionable Trade Ideas: Calls at $320, Stock Entry Near $313

For options traders: Buy GOOGL20260102C320 (next Friday’s $320 call) if the stock breaks above $315. The $320 strike is a psychological hurdle with heavy OI, and a close above it could trigger a cascade of call buyers. Alternatively, a bull put spread at $312.5/$300 offers downside protection if the stock consolidates.

For stock traders: Enter near $313 (middle Bollinger band) with a stop-loss below $310. Target $325 if the $320 level holds, or $330 if the bullish engulfing pattern completes. Avoid chasing above $315 without confirmation—volume needs to surge past 12M to validate the breakout.

Volatility on the Horizon: A Bullish But Cautious Outlook

Alphabet’s options and fundamentals are in sync for a $320+ move, but don’t ignore the technical headwinds. The 30D support/resistance zone (319.68–320.62) is a tight corridor—break above it, and the 200D MA at $213.61 becomes irrelevant. Below $310, though, the 30D MA at $305.79 could reignite bearish momentum.

Bottom line: This is a high-conviction trade for AI believers. The Intersect deal is a masterstroke, but patience is key. Let the $320 level do the talking before doubling down.