Alphabet (GOOGL) Options Signal Bullish Bias at $335 Strike—Here’s How to Play the AI-Driven Breakout

• GOOGL trades at $312.98, down 0.24% after a 2.6% drop on ex-dividend profit-taking. • Open interest shows 2.6x more calls than puts (2.07M vs 1.64M), with heavy call OI at $335 and $330. • Block trades reveal a $1.36M call buy at $260 (GOOGL20251219C260) and $720K put purchase at $235 (GOOGL20260320P235).

Here’s the takeaway: The options market is pricing in a strong upside bias, with heavy call accumulation at $335 and $330—strikes that align with analysts’ upgraded price targets. But the EU antitrust probe and recent profit-taking create a tug-of-war between short-term volatility and long-term AI/cloud growth. Let’s break it down.

Bullish Call OI and Whale Moves Point to $335 Target

The next Friday options chain shows 24,151 open contracts at $335 (GOOGL20251219C335), the highest of any strike. This suggests institutional players are hedging or positioning for a breakout above the 30D support level of $284.26. Meanwhile, a block trade of 1,000 calls at $260 (GOOGL20251219C260) for $1.36M hints at a deep-out-of-the-money bet—possibly a hedge against a sharp drop or a speculative play on AI-driven momentum.

The put side isn’t ignored: 24,544 puts at $310 (GOOGL20251219P310) and 20,376 at $290 (GOOGL20251219P290) indicate some caution. But the 0.79 put/call ratio (for open interest) tells a clear story—call buyers are dominating. If the stock holds above $311.90 (intraday low), the path to $335 looks viable.

News Flow: AI Wins vs. EU Risks

Alphabet’s Q3 earnings beat and NATO cloud contract are fueling optimism. The Gemini 3 AI model’s 650M monthly active users and $15.2B cloud revenue growth (up 34%) validate its AI/cloud strategy. But the EU’s antitrust probe—potentially a 10% revenue fine—adds near-term uncertainty.

Here’s the twist: The market already priced in the 2.6% drop on Dec 9 as profit-taking, not panic. Institutional investors added 43% more shares in Q3, and 43 of 54 analysts still rate GOOGL a “Strong Buy.” The EU issue is a speed bump, not a roadblock, for a company with $48B in levered free cash flow and a 32.23% net margin.

Trade Ideas: Calls for Breakouts, Puts for Hedging

For options: Buy the GOOGL20251219C335 call if GOOGL closes above $313.94 (intraday high). Target $335–$340, with a stop-loss below $311.90. For a safer play, sell the GOOGL20251219P310 put if the stock dips to $310, collecting premium while hedging downside.

For stock: Enter long near $311.90 (intraday low) with a target at $315 (above Bollinger Middle Band) and $320 (key resistance). If the EU probe escalates, consider a bearish put spread with GOOGL20251219P310 and GOOGL20251219P290.

Volatility on the Horizon

Alphabet’s 30D support at $284.26 and 200D resistance at $162.57 create a wide trading range. The key is whether the stock can break above $313.94 without retesting the $311.90 level. With AI-driven revenue streams growing and institutional confidence high, the long-term trend remains bullish—even as short-term volatility from regulatory risks lingers.

Bottom line: The options market is betting on a $335+ move, backed by AI/cloud momentum and strong fundamentals. But keep a close eye on the EU probe and profit-taking patterns. Position yourself with calls at $335 or a long stock entry near $311.90, and hedge with puts if needed. The next few weeks could be pivotal for GOOGL’s 2026 trajectory.