Alphabet (GOOGL) Options Signal $350 Bullish Battle: How to Play the AI-Driven Breakout

• Alphabet (GOOGL) trades at $329.81, up 0.38% with a 34% surge in Google Cloud revenue and $155B contract backlog.
• Options market shows 33,908 open interest at the $350 call strike (this Friday’s expiry) vs. 41,463 puts at $300—hinting at a key price war.
• Block trades sold 5,000 March 2026 $350 calls, suggesting whales are hedging or shorting near-term upside.

Here’s the takeaway: Alphabet’s options market is locked in a high-stakes tug-of-war between bulls eyeing $350 and bears bracing for a $300 fallback. With AI-driven news pushing the stock into $4 trillion territory, the technicals and options data align for a bullish breakout—but not without risks.

The $350 Call Wall and Institutional Hedging

Let’s start with the elephant in the room: 33,908 open interest at the $350 call strike (GOOGL20260116C350) for this Friday’s expiry. That’s nearly triple the next-largest call strike ($335). Why does this matter? It means a lot of traders are betting on a sharp move above $334.04’s intraday high. But here’s the twist: block trades sold 5,000 of the March 2026 $350 calls (GOOGL20260320C350) recently. Think of it like a tug-of-war—retail bulls are piling into short-term calls, while institutions are hedging or shorting longer-term upside.

On the downside, 41,463 puts at $300 (GOOGL20260116P300) suggest a psychological floor. If GOOGL dips below its 30D support at $313.28, those puts could trigger a cascade of stop-loss orders. The RSI at 88.52 also warns of overbought conditions—don’t ignore the risk of a pullback.

AI News: Fuel for the Fire or a Mirage?

Alphabet’s $4 trillion milestone isn’t just a number. The Gemini 3 AI model outperforming GPT-5, plus partnerships with Apple and Samsung, are real tailwinds. But here’s the catch: the market already priced in much of this. The stock’s 6% YTD gain and 72% 52-week surge mean future AI headlines need to surprise to keep the rally alive. That’s where options sentiment gets interesting—calls at $350 imply traders expect more fireworks, while the put-heavy profile at lower strikes shows lingering caution.

Trade Ideas: Calls, Stock Entries, and Exit Zones

For options traders: Buy the GOOGL20260116C340 or GOOGL20260123C345 calls. Why? The $340 strike is just 2.5% above the current price but sits below the $350 call wall—a sweet spot for a breakout play. If the stock gaps above $334.04’s high, these strikes could see explosive gains before Friday’s expiry. For longer-term positioning, the GOOGL20260320C350 calls (sold in block trades) might offer a discount if volatility dips post-breakout.

Stock traders: Consider entry near $313.28 (30D support) if the RSI corrects below 70. A bounce here could target $334.04 first, then test the $350 psychological level. But if the stock cracks below $313.28, tighten stops and watch for a test of the $298.34 Bollinger Band low.

Volatility on the Horizon: Bulls, Bears, and the $350 Crossroads

Alphabet’s options market is a chess game. Bulls are stacking calls at $350, betting on AI-driven momentum. Bears are hedging with puts at $300, wary of a tech sector rotation. The coming days will test whether the $4 trillion story can sustain its magic. If the $350 call wall holds, this could be the start of a new leg higher—but don’t bet the farm without a clear breakout above $334.04. Stay nimble, and let the data guide your next move.