Alphabet (GOOGL) Options Signal $330 Bullish Battle: Whale Buys and Overbought RSI Point to Breakout or Correction?

• Current price: $320.36, up 0.86% from $317.62
• RSI at 76.7 (overbought), MACD bullish with 13.84
• Block trade: 1,000 calls bought at $260 strike (Dec 19 expiry)

Here’s the takeaway: GOOGL’s options market is locked in a tug-of-war between bulls eyeing $330 and bears hedging at $300. The stock’s 0.86% intraday gain and overbought RSI suggest momentum, but the 0.78 put/call ratio (call-heavy open interest) hints at a potential correction if resistance fails. Let’s break it down.

Bullish Pressure at $330, Bearish Safeguards at $300

The options chain tells a clear story: 22,566 calls at the $330 strike (this Friday’s expiry) and 20,840 puts at $280 show heavy positioning around these levels. Think of it like a football game—bulls are stacking blockers at $330, while bears are digging trenches at $300. The MACD histogram (0.73) and 30D MA ($290.69) both point higher, but RSI’s 76.7 reading warns of a potential pullback.

Block trades add intrigue. A 1,000-lot call buy at $260 (GOOGL20251219C260) suggests big players are hedging a post-earnings pop. Meanwhile, the $330 call OI surge implies smart money is pricing in a breakout above Bollinger Bands’ upper band ($333.56). But watch the 30D support zone ($284–$285)—a break below $285 could trigger panic.

AI News Fuels Optimism, But Analysts Stay Cautious

Alphabet’s AI-driven revenue surge (Google Cloud, TPUs) and Gemini 3’s 10% search query boost are fueling bullish bets. The $900B TPU valuation estimate is a game-changer, but Cantor Fitzgerald’s $310 hold target (below current price) reminds us that regulatory risks and overbought technicals still linger. Retail traders might be chasing the AI hype, but institutional block trades show measured optimism—buying calls at $260 (a 15% discount to current price) suggests patience, not panic.

Trade Ideas: Calls at $325, Puts at $300, or Scalp the Range

For options:

• Bullish: Buy GOOGL20251212C325 (next Friday’s $325 call) if price breaks above today’s high ($323.16). Target $330, stop-loss at $319.16.
• Bearish: Buy GOOGL20251212P300 (next Friday’s $300 put) if price dips below $319.16. Target $300, stop-loss at $315.

For stock:

• Entry: Consider buying near $319.16 (intraday low) if 30D support holds. Target $325 (RSI re-entry zone), exit at $330 (Bollinger Band).
• Alternative: Short-term scalpers could trade the $319.16–$323.16 range, using RSI divergence as a signal.

Volatility on the Horizon: Watch the $330 Crossroads

The next 72 hours will test GOOGL’s resolve. A close above $330 would validate the bullish case, unlocking $340+ potential. But a failure to hold $319.16 could trigger a test of 200D MA ($204.68)—a long shot, but not impossible in a volatile AI sector. Either way, the options market’s focus on $330 and $300 means these levels will act as gravitational forces. Stay nimble, and let the data guide your next move.