Alphabet (GOOGL) Options Signal $320 Bullish Bias: Trade Setup for AI-Driven Cloud Growth

• GOOGL trades at $313.30, down 0.34% from $314.35, with a bullish engulfing candle and 30D support/resistance at $319.68–$320.62
• Call open interest dominates at $320 (9,792 OI this Friday) and $315 (7,513 OI), while puts peak at $312.5 (7,731 OI)
• Block trades show $2.54M put buy at $240 (expiring Jan 16, 2026) and $1.35M call buy at $260 (Dec 19, 2025)

The stock is perched at a crossroads: options data screams for a $320 breakout, but energy bottlenecks and cloud competition could delay the move.Bullish Pressure at $320 and Institutional Energy Bets

Call open interest is concentrated at the $320 strike for both this Friday (9,792 OI) and next Friday (7,477 OI), suggesting a critical price level to watch. The $315 strike also shows heavy call demand (7,513 OI), reinforcing the idea that bulls are positioning for a rebound above the 30D support/resistance zone ($319.68–$320.62). Meanwhile, the put/call ratio of 0.807 (calls > puts) signals a net bullish bias in the options market.

Block trades add intrigue. A $2.54M put purchase at the $240 strike (GOOGL20260116P240) hints at hedging activity for a potential January 16 expiration, while a $1.35M call buy at $260 (GOOGL20251219C260) suggests short-term bullish conviction. These moves align with Alphabet’s recent $4.75B Intersect Power acquisition—energy infrastructure is now a key battleground for AI expansion.

Cloud Growth News Fuels Options Sentiment

Alphabet’s Q3 2025 results—$41.04B in cloud revenue, 31.2% YoY growth—back the bullish case. The Intersect Power deal and $50B Fluidstack partnership directly address energy constraints, which CEO Pichai called "a critical bottleneck." Analysts at BMO have raised their 2026 price target to $343, and the stock’s 64% YTD gain shows investors are buying the narrative.

But don’t ignore the risks. Amazon and Microsoft are pouring $125B and $40B into cloud capex in 2025, respectively. Alphabet’s $91–93B capex plan is aggressive, but execution on energy projects will determine if the $320 level holds.

Trade Ideas: Calls at $320, Stock Breakout Play

For options traders, the GOOGL20260102C320 call (expiring Jan 2, 2026) offers a high-probability setup. With $320 near key support/resistance and heavy call OI, a breakout could trigger a rally toward $325–$330. Place a stop below $312 (lower Bollinger Band) to manage risk.

Stock traders should consider entry near $312 if the price holds above the lower Bollinger Band. First target: $320 (30D support/resistance). Second target: $325 (aligns with 200D moving average at $213.61, but long-term bullish trend suggests upward bias). A bearish counter is the GOOGL20260102P312.5 put (4,992 OI next Friday) if the stock dips below $312.

Volatility on the Horizon: Energy Plays and AI Timelines

Alphabet’s energy bets will dominate the next 3–6 months. If the Intersect Power acquisition closes in H1 2026 and co-location projects deliver, the $320 level could act as a springboard. But delays in energy infrastructure or weaker-than-expected cloud revenue growth could extend the consolidation phase. For now, the options market is pricing in a $320+ future—your job is to decide if you’re buying the optimism or hedging against the risks.