Alphabet (GOOGL) Options Signal $350 Bullish Bias: Here’s How to Position for AI-Driven Breakouts

• Current Price Surge: GOOGL trades at $330.57, up 1.58% with volume spiking to 12M shares.
• Options Imbalance: Call open interest dominates at $330 and $350 strikes, while block trades hint at institutional bets.
• Analyst Upgrades: Price targets hit $365–$390 as AI and cloud momentum accelerate.

Here’s the takeaway: GOOGL’s options market and technicals are screaming upside potential. With a short-term bullish Kline pattern, RSI near overbought levels, and a put/call ratio of 0.83 (calls outweighing puts), the stock is primed for a breakout—or a sharp correction if sentiment shifts. Let’s break it down.Bullish Calls Dominate, But Puts Signal Caution

The options chain tells a clear story: traders are piling into calls above $330. This Friday’s top OTM calls ($330, $335, $350) have combined open interest of 20,678 contracts, while puts at $315 ($17,593 OI) and $310 ($4,450 OI) suggest a floor near $315. But the real drama is in next Friday’s chain: GOOGL20260116C350 (29,381 OI) and GOOGL20260116C330 (19,889 OI) dominate, signaling heavy conviction for a $350+ move.

Block trades add intrigue. A 2,000-lot buy of GOOGL20260116C345 ($168K turnover) and a 500-lot buy of GOOGL20260116P330 ($235K) suggest smart money is hedging a big move—either way. The key takeaway? If GOOGL holds above $325 (Bollinger Middle Band), the $330–$350 range becomes a magnet.

News Flow Fuels the Bull Case

Analysts aren’t just guessing—Alphabet’s AI and cloud bets are paying off. Mizuho, Canaccord, and Wolfe have all raised price targets to $365–$390, citing Gemini AI’s 18% traffic surge and cloud infrastructure wins. Even Nvidia’s poaching of Google talent (Alison Wagonfeld) highlights Alphabet’s gravitational pull in AI.

But here’s the catch: RSI at 89.34 means overbought territory. A pullback to test the 30D support ($313.38–$313.95) isn’t out of the question. Retail traders might panic-sell puts if that happens—but institutional puts at $300 (39,352 OI) suggest dark pools are already hedging.

Actionable Trade Ideas for Today

1. Options Play: Buy GOOGL20260116C330 (strike price $330, expiring Jan 16) if GOOGL holds above $325. The $330 strike is a psychological hurdle with 19,889 OI backing it. For a safer bet, sell the $350 put to create a call spread: buy GOOGL20260116C330 and sell GOOGL20260116C350 to cap risk.
2. Stock Play: Enter long near $325 (today’s intraday low) with a stop-loss below $320. First target: $335 (RSI reversion level). Second target: $340 (block trade at $345’s shadow).

Volatility on the Horizon

Alphabet’s options market is a pressure cooker. With AI-driven price targets and block trades hinting at a $350+ move, the next 7 days could be pivotal. But don’t ignore the puts: if GOOGL dips below $320, the $315 strike (17,593 OI) could ignite a short-covering rally.

Bottom line: This is a stock with momentum and a roadmap. The question isn’t if it’ll move—it’s when the bulls will take out the $350 level. For traders, the setup is clear. For the rest of us? Buckle up.