Alphabet (GOOGL) Options Signal $350 Bullish Bias: How to Position for AI-Driven Breakout

• GOOGL surges 1.48% to $330.27, breaking above 30D support/resistance at $313.95
• Options data shows 0.83 put/call OI ratio, with $350 calls (next Friday) as top open interest
• Analysts hike price target to $365; Warren Buffett’s Berkshire invests in Alphabet

Here’s the core insight: GOOGL’s options market is pricing in a $350+ move by next Friday, driven by AI-driven optimism and heavy call buying. The stock’s 89.34 RSI and bullish Kline pattern suggest momentum is intact—but let’s dig into the numbers to see where to play it.

Bullish OI at $350 vs. Defensive Puts at $300: What’s the Play?

The options chain tells a clear story. For next Friday’s expiration (Jan 16), GOOGL20260116C350 leads with 29,381 open interest—nearly triple the next highest call. This isn’t just retail hype; block trades like GOOGL20260109C325 (2,000 contracts bought at $325 strike) and GOOGL20260116P330 (500 puts bought) hint at institutional positioning.

But don’t ignore the puts. GOOGL20260109P315 (17,593 OI this Friday) and GOOGL20260116P300 (39,352 OI next Friday) show hedgers preparing for a pullback. The 0.83 put/call OI ratio (calls > puts) still favors bulls, but the sheer size of $300 puts suggests some big players are bracing for a test of 200D support at $249.53.

News Flow: AI Wins Outweigh Legal Risks for Now

Alphabet’s $3.89T market cap surge isn’t just numbers—it’s backed by real momentum. The AI-enhanced Gmail rollout and Berkshire Hathaway’s $365 price target upgrade are fueling investor confidence. But the Character.AI settlement and deepfake debates add a layer of caution.

Here’s the key: The market is pricing in AI growth, not legal headwinds. Institutional buyers like Buffett are betting the company can navigate these challenges while scaling Gemini and cloud services. Retail traders should watch volume spikes in $350 calls as a proxy for this sentiment.

Actionable Trades: Calls for Breakouts, Puts for Protection

1. Bull Call Spread: Buy GOOGL20260116C350 (strike price $350) if GOOGL closes above $330.83 today. Target $365 (Mizuho’s new PT), exit if RSI dips below 70.
2. Defensive Put Hedge: Buy GOOGL20260109P315 (strike $315) to protect against a post-breakout selloff. Use this if GOOGL dips below $325.8 intraday low.
3. Stock Entry: Consider buying GOOGL near $330.27 if it holds above $313.38 (30D support). Target $340 (Bollinger Upper Band), stop-loss at $310.

Volatility on the Horizon: Bullish Trends with Caution

The next 72 hours will test GOOGL’s resolve. A close above $330.83 could trigger a run at $340, but don’t ignore the $315 puts—volatility might spike if AI hype clashes with earnings misses or regulatory news. For now, the data says bulls control the narrative, but smart traders will balance their positions with defensive puts.

Bottom line: This is a high-conviction AI trade. If you’re in, go with the $350 calls. If you’re cautious, pair your longs with $315 puts. Either way, the options market is giving us a clear roadmap—stick to it, and watch the data evolve.