Alphabet (GOOGL) Options Signal $330 Bullish Battle: How to Play the AI-Driven Breakout

• Price action: GOOGL drops 1.37% to $316.66, testing 30D support at $284.06
• Options heat: Call open interest spikes at $330 (13,984) and $335 (24,057), while puts pile up at $290 (9,417) and $310 (24,028)
• Block trades: $2.5M put block at $240 (Jan 2026) and $1.35M call buy at $260 (Dec 19) hint at big money moves

The options market is locked in a high-stakes chess match around GOOGL. With call open interest surging at the $330 strike and puts stacking up at $290–$310, we’re seeing a classic "bull trap" setup. But here’s the twist: technicals and AI-driven fundamentals are lining up for a breakout. Let’s break down why this could be your best shot at catching Alphabet’s next 10% leg higher.

Bullish Pressure vs. Bearish Safeguards

The options data tells a story of conflicting forces. For this Friday’s expirations, the GOOGL20251212C330 call has 13,984 open contracts—nearly double the next strike. That’s a red flag for volatility, but not necessarily bearish. Think of it like a dam holding back water: heavy call OI at $330 means big players are betting on a rebound.

But don’t ignore the puts. The GOOGL20251212P290 has 9,417 open contracts, and next Friday’s GOOGL20251219P310 has 24,028. That’s a bearish "floor" forming around $310. If GOOGL breaks below its 30D support at $284.06, those puts could trigger a cascade of selling.

The block trades add intrigue. A $1.35M buy of GOOGL20251219C260 calls suggests someone’s prepping for a short-term pop. Meanwhile, the $2.5M put block at $240 (expiring Jan 2026) shows deep-seated caution—like a hedge against a prolonged AI sector correction.

News That Could Tip the Scales

Alphabet’s story isn’t just numbers—it’s about AI dominance. Pivotal Research’s $400 price target hinges on Gemini outpacing OpenAI, and Google’s cheaper TPU chips are a real game-changer. But here’s the catch: insider selling ($91M by Pichai) and regulatory risks still loom.

The valuation math checks out, though. At $321.27, GOOGL trades at a 31x multiple—undervalued by 5.5% relative to its $340 fair price. If Gemini delivers on its promise, this could be the spark for a $380+ run. But don’t bet the farm: regulatory scrutiny or AI adoption slowdowns could derail the train.

Your Playbook: Calls, Puts, and Precision Entries

For options traders, the GOOGL20251219C330 call is your best bet. With 15,502 open contracts and expiration on Dec 19, it’s positioned to catch a rebound off the $316.32 intraday low. Target a close above $322 (breakout level) to validate the move.

If you’re hedging, the GOOGL20251219P310 put offers downside protection. At 24,028 open contracts, it’s the most liquid put for a $310 floor.

For stock buyers, look to enter near $316.32 if support holds. Set a tight stop below $310 and aim for $322–$325 as initial targets. A break above $325 would signal institutional buying has taken over.

Volatility on the Horizon

This isn’t a "buy and forget" trade. The options data and block trades suggest a volatile December. If GOOGL cracks $322 by Dec 19, the $330–$335 calls could explode. But if it falls below $310, brace for a test of the 200D support at $162.57.

The AI narrative is strong, but execution matters. Keep an eye on Gemini’s real-world adoption and TPU chip production. For now, the market is pricing in a 26% upside to $400—but only if Alphabet can hold its ground above $310.

Bottom line: This is a high-conviction trade for those who believe in AI’s next phase. Play it smart, and let the options data guide your entries and exits.