Alphabet (GOOGL) Options Signal $335 Bullish Battle: Whale Moves and RSI Setup Point to Strategic Entry Zones

• GOOGL plunges 1% today, breaking below 30-day support at $284.88
• Options data shows 24,309 OI at $335 call (next Friday expiry) vs 20,176 OI at $290 put
• Block traders just bought 1,000 contracts of GOOGL20251219C260 for $1.355M

Here’s the big picture: GOOGL’s options market is locked in a tug-of-war between bulls eyeing a $335 breakout and bears bracing for a $290 support test. The RSI at 65.28 suggests overbought territory, but the MACD histogram (-1.44) warns momentum is fading fast. This creates a rare setup where technicals and options sentiment align for a directional trade—if you know where to position.

The $335 Call Wall and $290 Put Floor: A Volatility Sandwich

Let’s break down the options chessboard. For next Friday’s expiry, the GOOGL20251219C335 call has 24,309 open contracts—nearly double the 20,176 OI at the GOOGL20251219P290 put. This isn’t just a strike price imbalance; it’s a bet that volatility will force a directional move. The block trade of 1,000 GOOGL20251219C260 calls at $1.355/share suggests smart money is hedging a short-term rebound. But don’t ignore the puts: that $290 strike has 20k+ OI, meaning a breakdown below $305.56 could trigger cascading liquidation.

The real drama? The GOOGL20260320P235 block trade ($720K for 500 puts) and GOOGL20260116P240 ($2.54M for 2k puts) hint at long-term bearish positioning. If the stock can’t hold above $307.05 (Bollinger middle band), these deep-out-of-the-money puts could become dangerous weapons in a selloff.

AI News vs. Options Sentiment: A Symbiotic Struggle

Alphabet’s recent headlines are a mixed bag. The Gemini-powered Google Translate rollout and Citigroup’s $340 price target scream bullish, but Broadcom’s "transactional move" comment on TPUs adds friction. Here’s the twist: while the news validates the $335+ call thesis, the block trades at $235 puts suggest institutional players aren’t fully buying the AI hype. This creates a paradox—retail traders might chase the AI narrative, but whales are hedging for a potential correction.

The key is timing. The $340 price target from Citigroup aligns with the $335 call wall, but the RSI near 65 warns of a possible pullback. If GOOGL closes above $314.85 (intraday high), the bulls gain momentum. Below $305.56, the puts dominate.

Trade Ideas: Calls for the Bold, Puts for the Pragmatic

For options traders:

• Bullish Play: Buy GOOGL20251219C260 at $1.355/share. Target $310 (5.6% move) to trigger a 30%+ gain. Stop loss if GOOGL closes below $300.
• Bearish Play: Buy GOOGL20251219P290 at $2.0144/share. Target $285 (7.3% drop) for 50%+ return. Exit if $310 support holds.

For stock traders:

• Long Entry: $305.56 (intraday low) if GOOGL bounces off Bollinger middle band at $307.05. Target $314.85 (5.3% up) first, then $320 (7.4%).
• Short Entry: $310 if RSI breaks 60 and MACD turns negative. Target $290 (6.5% down) with a stop at $314.85.

Volatility on the Horizon: The $335 Tipping Point

The next 72 hours will test GOOGL’s resolve. If the stock closes above $314.85, the $335 call wall becomes a gravity-defying launchpad. But a breakdown below $305.56 could trigger a freefall toward $274.55 (lower Bollinger band). Either way, the options market has already priced in extremes—now it’s about execution. Stay nimble, and watch those $335 and $290 strikes like hawks. The AI story isn’t over, but the options are whispering: this is the week it gets decided.