Alphabet (GOOGL) Options Signal $340 Bull Call Play Amid $4T Milestone — Here’s How to Position

• Alphabet (GOOGL) trades at $332.09, down 1.1% from its $337.51 open amid a volatile session.
• Options data shows heavy call open interest at $335–$350 strikes for Friday expiration, while puts dominate at $300.
• Recent AI partnerships with Apple and Walmart, plus a $4 trillion market cap milestone, fuel bullish momentum.

Here’s the core insight: options market sentiment and technicals align for a potential upside breakout above $340, but near-term volatility remains a wildcard. Let’s break down why this $332 level is a critical crossroads for GOOGL.

Bullish Pressure at $340–$350, But Puts Hint at Caution

The options chain tells a story of aggressive bullish positioning. For Friday’s expiration (2026-01-16), call open interest spikes at the $340 (15,000 contracts) and $345 (9,159 contracts) strikes, with a tail extending to $350 (30,800 OI). This suggests institutional or retail traders are hedging for a short-term pop—likely tied to the Apple/Walmart AI news and the $4 trillion milestone.

But don’t ignore the puts: $300 puts (40,623 OI) are a bearish anchor, implying some market participants expect a pullback to test the 30-day support zone near $313.20. The put/call ratio of 0.84 (calls > puts) reinforces the bias, but the sheer size of the $300 puts acts as a speed bump for bulls. No major block trades today, so this is a retail/institutional-driven setup.

AI Alliances and $4T Valuation: Fuel for the Fire

Alphabet’s recent headlines are a goldmine for bulls. The Apple partnership to power Siri with Gemini AI and the Walmart retail integration aren’t just PR wins—they’re monetization catalysts for Google’s AI infrastructure. Pair that with the $4 trillion market cap milestone (a psychological tailwind), and you’ve got a narrative that justifies the current rally.

But here’s the catch: investor perception matters. If the market starts pricing in “AI hype over earnings,” the $340–$350 calls could face profit-taking. However, the technicals (RSI at 86.39, MACD above signal line) still scream "buy the dip" for long-term holders.

Trade Ideas: Calls for Friday, Stock for the Long Haul

For options traders: Target the GOOGL20260116C340 and GOOGL20260116C345 calls. Why? The $340 strike is a key psychological level with 15,000 contracts in OI, and a close above $337.69 (today’s high) could trigger a cascade of stop-loss buying. If you want a longer play, the GOOGL20260123C340 (next Friday) offers a buffer for consolidation.

For stock players: Consider entry near $313.20 (30-day support) if the price holds. A break above $337.69 (Bollinger Upper Band) would target $340 first, with $350 as a stretch if the AI narrative gains steam. Use the $313.20–$313.99 support zone as your hard stop.

Volatility on the Horizon: Bulls Have the Edge

The data paints a clear picture: Alphabet is at a inflection point. The options market is pricing in a $340+ move by Friday, backed by AI-driven fundamentals and a $4 trillion valuation tailwind. But don’t ignore the $300 put wall—it’s a reminder that a sharp reversal could test the 30-day support.

Bottom line: This is a high-conviction bullish setup, but only if the stock holds above $313.20. If it breaks, the puts could accelerate a selloff. Position accordingly—use the calls for short-term gains and the stock for a longer AI-driven rally.