Alphabet (GOOGL) Options Signal $350 Bull Call Play Amid $4 Trillion Valuation Surge

• Alphabet (GOOGL) trades at $331.76, down 0.3% from its 52-week high of $334.65.
• Options data shows heavy call open interest at $350 and $340, with a put/call ratio of 0.86 (bullish skew).
• Analysts raised price targets to $365–$390, citing AI and cloud growth, while the stock hit a $4 trillion valuation.

Here’s the core insight: options market sentiment and technicals align for a bullish breakout. The stock is perched near key resistance levels, with call options at $350 showing strong demand. But the bearish engulfing candle on the chart warns of short-term volatility. Let’s break it down.

Bull Call Play: $350 Strike Dominates, But Watch the $300 Put Wall

The options chain tells a clear story. For this Friday’s expiration, the $350 call (GOOGL20260116C350) has 31,082 open contracts—nearly double the next highest strike. This suggests traders are betting on a sharp move above $334.65 (intraday high). Meanwhile, the $300 put (GOOGL20260116P300) has 40,500 open contracts, acting as a psychological floor.

But here’s the twist: the put/call ratio (0.86) leans bullish, yet the bearish engulfing pattern on the chart warns of a potential pullback. If GOOGL dips below $313.20 (30-day support), the $300 put wall could catch a rebound. However, heavy call demand at $350 implies a strong conviction in a $335+ close by Friday.

News Flow: AI and Cloud Catalysts Validate $4 Trillion Valuation

The recent $4 trillion valuation isn’t just hype. Analysts from Mizuho, Scotiabank, and Canaccord all raised price targets to $365–$390, citing Gemini AI’s dominance and Google Cloud’s $100B revenue milestone. The Apple-Gemini partnership alone could generate $1B annually in licensing revenue.

But here’s the catch: the stock’s 78.9 RSI suggests overbought conditions. If the AI narrative falters or cloud growth slows, the $313.20 support becomes critical. Retail traders might be overconfident in the AI story, but institutional money is hedging with those $300 puts.

Actionable Trade Ideas: Call Spreads and Support Breakouts

1. Bull Call Spread (Next Friday Expiry): Buy GOOGL20260123C345 (strike at $345) and sell GOOGL20260123C360. The $345 call has 6,772 open contracts and is currently in the money. If GOOGL closes above $335 by Jan 23, the spread could capture a 10–15% gain.

1. Stock Entry at $313.20 Support: If GOOGL dips below $331.22 (intraday low), consider buying near $313.20 (30-day support). Target $335 if the 200-day MA ($225.50) holds. Stop-loss below $300 to avoid a breakdown.

1. Bearish Put Spread (If Volatility Spikes): Buy GOOGL20260116P300 and sell GOOGL20260116P260. The $300 put has 40,500 open contracts and could profit if the stock gaps down. But only if the $313.20 support fails.

Volatility on the Horizon: Bullish Trends Ahead, But Caution at Key Levels

The $350 call wall and analyst upgrades paint a bullish picture, but the bearish engulfing candle and overbought RSI add risk. If GOOGL holds $313.20, the $335–$350 range becomes a prime target. However, a breakdown below $300 would shift the narrative.

Bottom line: This is a high-conviction trade for AI believers. The options market is pricing in a $350+ close by Friday, but don’t ignore the $300 put wall. Play it smart—use spreads to limit risk and let the $4 trillion valuation story play out.