Alphabet (GOOGL) Options Signal $340 Bullish Bias: How to Position for AI-Driven Breakouts Amid Skewed Put/Call Ratio (0.85)

• Current price: $329.49, down 0.32% from $330.54
• Call open interest spikes at $340 strike (7,872 contracts for next Friday)
• Put/call ratio for open interest: 0.85 (calls dominate bearish hedging)

Here’s the big picture: Options data and technicals align on a clear bullish bias for GOOGL. With call open interest surging at $340 strikes and RSI hovering near overbought territory, the stock is primed for a breakout—if it can hold key support at $327.50. Let’s break down why this is a setup worth watching.

Bullish Imbalance in Options: Calls at $340, Puts at $260 Tell the Story

The options market isn’t whispering—it’s shouting. For this Friday’s expiration, 10,273 call contracts are open at the $335 strike, and 7,872 at $340 for next Friday. That’s not just noise; it’s a vote of confidence from institutional players. Meanwhile, puts are clustered at $260 (10,837 contracts), a level so far below current price it feels like a panic play for a catastrophic crash.

The put/call ratio of 0.85 (calls outweighing puts) reinforces this. Bulls are betting on a $340+ move, while bears are hedging extreme downside scenarios. The risk? If the stock stumbles below $327.50 (lower Bollinger Band), those puts could suddenly gain traction.

Block trades add intrigue: A 500-contract purchase of the GOOGL20260320P300 put ($300 strike, March 20 expiration) suggests some players are hedging long-term positions. But the sheer volume of call open interest tells me the immediate focus is on breaking higher.

News Flow: AI Partnerships and Analyst Upgrades Fuel Optimism

Alphabet’s recent partnership with Sakana AI isn’t just a headline—it’s a strategic move to turbocharge its generative AI ecosystem. Pair that with Stifel’s $346 price target and Google Cloud’s 34% revenue growth, and you’ve got a recipe for sustained bullish momentum.

But here’s the catch: Insider selling (CEO Pichai offloaded $93.9M in shares) could create short-term volatility. However, analysts like Goldman Sachs ($375 target) and UBS ($345) are doubling down on AI/cloud growth, so the long-term narrative remains intact. Retail traders might be skittish, but institutions are piling in—Berkshire Hathaway added 31.2M shares in Q3 alone.

Actionable Trades: Calls at $340, Stock Breakouts at $333

For options: Buy the GOOGL20260130C340 ($340 call, expiring Jan 30) if GOOGL breaks above $333 (intraday high). With RSI at 67.58 and MACD near the signal line, a close above this level could trigger a rally toward $340. Target a 10–15% move by expiration.

For stock: Consider entries near $327.45 (intraday low) if support holds. Set a stop-loss below $322.58 (middle Bollinger Band). If the price retests $330, use it as a buying opportunity—RSI suggests a rebound is likely.

Bearish hedge: A put spread at $320/$310 could limit downside risk if the stock gaps lower. Use the GOOGL20260130P320 and GOOGL20260130P310 for defined risk.

Volatility on the Horizon: AI Momentum or Correction?

The next 72 hours will be critical. If GOOGL holds $327.50 and breaks $333, the $340 call wall could push the stock toward analysts’ $346–$390 price targets. But a close below $322.58 would validate the $260 put open interest as a real threat. Either way, the options market has priced in a directional move—now it’s about timing the catalyst.

Bottom line: This isn’t a sideways stock. With AI integration accelerating and cloud profits surging, GOOGL is either going to punch through $340 or face a sharp correction. Position accordingly—and keep an eye on that $327.50 level. It’s the line in the sand.