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

• GOOGL surges 1.45% to $314.28, trading near 20-day Bollinger Band upper bound of $327.83.
• Options data shows heavy call open interest at $320 and $315, with block trades hinting at $260 call buying ahead of 2025-12-19 expiry.
• Alphabet’s $4.75B Intersect acquisition targets energy bottlenecks for AI infrastructure, aligning with bullish technicals.

Here’s the takeaway: GOOGL’s price action and options positioning suggest a strong case for a $320 breakout by early 2026, driven by AI infrastructure demand and strategic energy bets. But watch for a potential pullback to $300–$305 if short-term momentum falters.

Bullish Sentiment Locked at $320: What the Options Chain Reveals

The options market is painting a clear picture. For this Friday’s expirations, the $320 call (GOOGL20251226C320) has 8,192 open contracts—the highest of any strike. That’s not just noise; it’s a price level where a lot of money is betting on a breakout. The next Friday chain (expiring 2026-01-02) reinforces this, with $320 and $325 calls holding 5,485 and 4,434 open contracts respectively.

But it’s not all one-way bullish. The $290 and $300 put strikes have 6,317 and 6,145 open contracts, suggesting some hedging against a drop. The put/call ratio of 0.79 (based on open interest) leans slightly bearish, but the sheer volume of call buying at $320 dominates the narrative.

Block trades add intrigue. A 1,000-lot buy of the $260 call (GOOGL20251219C260) and a 500-lot buy of the $235 put (GOOGL20260320P235) suggest big players are positioning for both upside and downside volatility. The $240 put (GOOGL20260116P240) appears twice in block trades, hinting at a floor target around that level if the stock stumbles.

Energy Acquisition Fuels Long-Term Bull Case

Alphabet’s $4.75B Intersect deal isn’t just a headline—it’s a strategic move to future-proof its data centers against energy constraints. The acquisition adds 10.8 gigawatts of power capacity by 2028, directly addressing the energy demands of AI workloads. This aligns with the stock’s technical setup: the 200-day moving average ($212.87) is a distant floor, while the 30-day support at $319.68 is just below current price action.

Investor sentiment is key here. The market has priced in growth for Google Cloud, which now contributes 10.5% of Alphabet’s revenue. With AI infrastructure spending projected to hit $90B in 2025, the Intersect deal isn’t just about energy—it’s about securing Alphabet’s dominance in cloud computing. That’s why the options market is pricing in a $320+ move, not just for the stock, but for the broader narrative of AI-driven energy solutions.

Trade Ideas: Calls for Breakouts, Puts for Protection

For options traders, the $320 call (GOOGL20260102C320) is a prime candidate if GOOGL breaks above $315. The strike is just 1.8% above current price but sits at the intersection of 30-day support ($319.68) and Bollinger Band resistance ($327.83). A breakout here could trigger a wave of stop-loss buying.

Stock traders should consider entry near $313.75 (the middle Bollinger Band) with a target at $320 and a stop-loss below $309.32 (today’s intraday low). For downside protection, a bearish put spread at $300 (GOOGL20260102P300) and $290 (GOOGL20260102P290) could capitalize on a pullback, especially if RSI (currently at 45) fails to cross above 50.

Volatility on the Horizon: Positioning for 2026

The next two weeks will test GOOGL’s resolve. A close above $320 would validate the bullish case, while a drop below $305 could trigger a retest of the 200-day moving average. Either way, the Intersect acquisition and AI infrastructure spending provide a strong tailwind. For now, the options market is pricing in a $320+ move by early 2026—so the question isn’t whether GOOGL can get there, but whether you’re ready to ride the wave.