Alphabet (GOOGL) Options Signal $350 Bullish Bias Amid $4T Valuation Surge – Here’s How to Play It

• GOOGL trades at $329.84, down 0.88% from its 52-week high but still 136% above its 2025 low.
• Options data shows call open interest dominates at $350 and $340 strikes, while puts pile up at $300 and $200.
• Alphabet just surpassed $4 trillion in market cap, powered by Gemini AI and Apple/Siri partnerships.

Here’s the thing: GOOGL’s options market is painting a clear picture. Traders are betting big on a rebound toward $350, but the technicals and news suggest this could be more than a short-term bounce—it might be the start of something bigger. Let’s break it down.

Bullish Fortresses and Bearish Guardrails in Options Data

The options chain for this Friday (2026-01-16) shows a striking imbalance. Call open interest peaks at the $350 strike (OI: 31,082) and $340 (OI: 14,626), while puts max out at $300 (OI: 40,500) and $200 (OI: 32,188). This isn’t just a bullish bias—it’s a strategic setup. Traders are hedging downside risk with deep-out-of-the-money puts but aggressively buying calls as if anticipating a breakout above $334.65 (today’s intraday high).

The put/call ratio of 0.86 (calls > puts) reinforces this. But here’s the catch: the RSI at 78.9 and the bearish engulfing candlestick pattern suggest a short-term pullback is likely. If the price tests support at $313.20 (30D level), those puts at $300 could act as a safety net. For now, the market is pricing in a $350 target by next Friday—will it hold?

Why the $4 Trillion News Matters for Traders

Alphabet’s valuation surge isn’t just hype. The Apple-Gemini partnership alone could generate $1 billion annually, and TPUs position the company to monetize AI hardware. This validates the call options’ optimism. But here’s the twist: the market is already pricing in much of this. The stock’s 33.14 P/E ratio and 14.94% projected earnings growth mean there’s less room for surprise unless AI adoption accelerates faster than expected.

Investor sentiment is split. Retail traders might be chasing the rally, but institutional puts at $200 suggest some are hedging against a broader tech sector correction. The key question: does the $4 trillion narrative hold if AI monetization slows, or is this a self-fulfilling prophecy?

Actionable Trades: Calls for the Bold, Puts for the Pragmatic

For options traders, the most compelling setup is the GOOGL20260123C340 call (expiring next Friday). Why? The $340 strike sits just below today’s 20-day moving average ($316.77), and if the stock holds above $329.38 (intraday low), this strike could see significant gamma-driven acceleration. A tighter play: the GOOGL20260123C337.5 (OI: 2,638) if you’re bullish on a quick rebound.

On the downside, the GOOGL20260123P310 put (OI: 2,269) offers cheap insurance. If the RSI overbought level triggers a pullback, this strike could act as a floor. For stock traders, consider entries near $329.38 with a target at $334.65 (intraday high) or $339.60 (Bollinger upper band). A stop-loss below $313.20 would protect against a breakdown.

Volatility on the Horizon: Balancing AI Hype and Technical Realities

Alphabet’s story is a classic case of “the future is now” meets “don’t chase momentum.” The options market is pricing in a $350+ move, but the technicals warn of a near-term correction. If the stock holds above its 30D support ($313.20), the bullish case remains intact. But if it breaks below $313.20, those deep puts at $200 could signal a broader reevaluation of AI valuations.

Bottom line: This is a high-conviction trade for those who believe in Alphabet’s AI dominance. The options data and news align on a $350+ target—but the path there might be bumpy. Stay nimble, and let the technicals guide your exits as much as your entries.