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

• GOOGL trades at $329.58, down 0.96% on heavy volume (22.9M shares).
• Call open interest dominates at $350 (31,082 contracts) and $330 (14,843), while puts pile up at $300 (40,500).
• A $345 call block trade (1,964 contracts sold) hints at institutional hedging ahead of next Friday’s expiry.
• Gemini AI partnerships and cloud revenue growth could fuel a $340+ rally—but regulatory risks linger.

The stock is caught in a tug-of-war: technicals suggest a short-term bearish reversal (that bearish engulfing candle!), but long-term bullish trends and AI-driven news keep the 30D MA at $316.77 as a key floor. Let’s break it down.Bullish Calls Pile Up at $350—But Puts Warn of a $300 Floor

Options market sentiment is split but telling. The GOOGL20260123C350 call has 31,082 open contracts—triple the next strike. That’s a crowd betting on a $350+ move by Friday. Meanwhile, puts at $300 ($40,500 OI) and $200 ($32,188) suggest deep fear of a collapse. The put/call ratio of 0.86 (calls > puts) leans bullish, but don’t ignore that $300 strike—it’s a psychological wall.

The block trade of 1,964 GOOGL20260123C345 calls sold is a red flag. Big players are hedging a rally but not committing to $350. Think of it like a sprinter tightening their spikes: they’re ready to run, but not sure how far.

AI News Fuels Optimism—But Risks Are Real

Alphabet’s $4T valuation isn’t just hype. Gemini’s 650M active users and cloud backlog hitting $155B are real catalysts. Analysts love the $370–$390 price targets, and the $73.6B free cash flow gives room for aggressive buybacks. But here’s the catch: forced divestitures of ad tech and AI margin wars could stall the train. The market’s pricing in a smooth ride—don’t bet the farm without a seatbelt.

Trade Ideas: Calls for the Breakout, Puts for the Safety Net

• Bullish Play: Buy GOOGL20260123C345 (next Friday expiry) if GOOGL breaks above today’s high of $334.65. Target $350+ for 10–15% gains.
• Conservative Spread: Buy GOOGL20260123C330 and sell GOOGL20260123C345 to cap risk while profiting from a $340+ move.
• Downside Hedge: Buy GOOGL20260123P300 (40,500 OI) if the stock dips below $327.70. Stop-loss at $313.20 (30D support).
• Stock Entry: Consider buying GOOGL near $327.70 (intraday low) with a target at $335 (Bollinger midline) and $345. Exit if it falls below $313.20.

Volatility on the Horizon: Balancing AI Hype and Reality

The next two weeks will test GOOGL’s resolve. A breakout above $335 could trigger the $350 call frenzy, but a close below $327.70 would invite puts to take control. The Bollinger Bands (upper at $339.60) and 30D MA ($316.77) are your guardrails. Remember: this stock isn’t just about AI—it’s about execution. If the cloud revenue misses or regulators strike, even the best options setups could backfire. Stay nimble, and let the data guide your next move.