Alphabet (GOOGL) Options Signal $330 Bullish Battle: How Traders Can Position for AI-Driven Volatility

• GOOGL plunges 2.55% to $312.86, breaking below its 30-day support zone of $284–285.
• Options data shows 24,057 open calls at $335 (next Friday expiry) vs. 24,028 puts at $310—hinting at a tight price war.
• Block trades reveal a $1.35M buy of 1,000 GOOGL20251219C260 calls, signaling near-term bullish bets.

Here’s the takeaway: Bulls and bears are circling GOOGL like hawks over a field. The stock’s 2.5% drop today has created a volatile crossroads—technical indicators scream long-term bullishness, but options activity suggests a critical $330 threshold could decide the next move. Let’s break it down.

The Options Crossroads: Calls vs. Puts at $330

The options chain tells a story of tension. This Friday’s top call open interest piles up at $330 ($13,984 contracts) and $325 ($9,222), while puts cluster at $290 ($9,417) and $310 ($4,756). Next Friday’s data amplifies the drama: 24,057 calls at $335 vs. 24,028 puts at $310. That near-perfect call/put balance? A red flag. When OI is this evenly split, it often precedes a sharp directional move—either a breakout above $330 or a collapse toward $290.

Block trades add fuel. The $1.35M GOOGL20251219C260 call purchase (expiring Dec 19) is a big bet that AI-driven momentum will push the stock above $260 in three weeks. Meanwhile, the $720K GOOGL20260320P235 put buy (March 2026 expiry) hints at long-term hedging by institutional players. The message? Short-term bulls are aggressive, but deep puts suggest lingering caution about a potential AI hype correction.

News That Could Tip the Scales

Alphabet’s recent headlines are a mixed bag. The Meta AI chip partnership and 30x 2026 earnings multiple are bullish, but Harfst & Associates trimming its stake by 12.8% adds friction. Here’s the kicker: the Zacks consensus sees 30.9% earnings growth, yet the stock’s valuation grade of “D” means it’s trading at a premium. This creates a paradox—strong fundamentals but overbought pricing. If the AI hype fades, the stock could retest its 200-day support at $162.57. But if the Meta deal accelerates cloud/AI margins, $380 targets from analysts might feel conservative.

Actionable Trades: Calls, Puts, and Precision Entries

For options traders, the most compelling setup is the GOOGL20251219C320 call (Dec 19 expiry). With the stock currently at $312.86, a $320 call offers leverage if the stock rebounds above its intraday high of $320.44. Pair it with a GOOGL20251219P310 put (OI: 4,756) as insurance—this $10-wide collar costs less than a full hedge but protects against a drop below $301.23 (Bollinger middle band).

Stock traders should consider entries near $301.23 if the price holds above its 30-day support. A breakout above $320.44 (today’s high) could target $335 (Bollinger upper band), while a breakdown below $284.06 (30-day support) would aim for $266.47 (lower Bollinger). For a short-term play, go long at $312.86 with a stop-loss at $301.23 and a target at $325—this aligns with both the 30D MA and call-heavy OI zones.

Volatility on the Horizon

The next 72 hours will be pivotal. If GOOGL closes above $320.44, the $330–$335 call-heavy zone could ignite a rally toward $340. But a close below $301.23 would validate the put-heavy $290–$310 bear case. This is a stock at a crossroads—where AI optimism meets valuation reality. Traders who position with directional calls and protective puts will be best prepared for whichever path the market chooses.