Alphabet (GOOGL) Options Signal $325 Call Contention Amid AI Fatigue and EU Scrutiny – Here’s How to Play the Volatility

• GOOGL drops 1.1% to $308.98, breaking below its 30D support at $284.87.
• Options data shows 24,309 open interest at the $335 call (next Friday expiry), while $290 puts dominate bearish bets.
• Block trades reveal a $260 call buy and $230 put purchase, hinting at institutional hedging.

Here’s the core insight: options market sentiment is split between cautious bullishness and regulatory-driven fear. The stock’s 100D/200D moving average gap ($249.54 vs. $208.15) still screams long-term value, but today’s price action—slumping below Bollinger Bands’ middle line—adds short-term risk. Let’s break it down.

The $325 Call Wall and Whale Moves

The options chain is a chessboard. This Friday’s $325 call (GOOGL20251212C325) has 13,954 open interest, while next Friday’s $335 call (GOOGL20251219C335) jumps to 24,309. That’s not just noise—it’s a bullish magnet. Think of it like a dam holding back a river: if GOOGL breaks above $314.85 (today’s high), those calls could flood through.

But don’t ignore the puts. The $300 put (GOOGL20251219P300) has 12,965 open interest, and the $230 put (GOOGL20260320P230) block trade ($720K) suggests some big players are hedging for a worst-case scenario. The put/call ratio of 0.797 (calls dominate) leans bullish, but the $230 strike is a red flag—a 25% drop from current price.

News: AI Optimism vs. Regulatory Headwinds

Analysts like Citizens’ Boone and Mizuho’s Walmsley are bullish on Waymo’s long-term AV partnerships, but today’s NHTSA probe and EU antitrust threats are like a storm cloud. OpenAI’s GPT-5.2 launch didn’t help—AI stocks got whacked, and GOOGL’s 3.6% drop to $308.60 shows the pain.

Here’s the twist: the market is pricing in a “wait-and-see” game. The $340 price target from Citizens and $365 from Mizuho still hang in the air, but the EU probes and Waymo recall could delay those wins. Investors are torn between “AI’s next big thing” and “regulators are coming for Big Tech.”

Trade Ideas: Calls for Conviction, Puts for Protection

If you’re bullish but cautious, buy the GOOGL20251219C260 call (1,000 contracts traded today). Entry near $260 would lock in a 15% upside if the stock rebounds. For a safer play, sell the GOOGL20251219P300 put (strike at $300) to collect premium while capping downside risk.

Stock traders: Consider entry near $284 (30D support) if GOOGL holds above $274.55 (lower Bollinger Band). A break above $314.85 could trigger a rally toward $340, but watch the $305.56 intraday low—a close below $305 would confirm bearish momentum.

Volatility on the Horizon: Balancing Bullish Fundamentals with Near-Term Risks

The long-term story for Alphabet is intact—Waymo’s AV tech and AI-driven ad growth still matter. But the next two weeks are a tightrope. The $325 call wall and $230 put block trades suggest a high-stakes game of chicken between bulls and bears.

Bottom line: Options traders should favor next Friday’s expiries (12/19) for longer-term positioning, while stock buyers need patience. If the EU probes ease and Waymo passes its NHTSA deadline (Jan 20), the $340–$365 targets could still materialize. For now, the market’s split—calls for hope, puts for fear—means volatility isn’t going anywhere.