Alphabet A (GOOGL) Options Signal Bullish Bias: Key Strike Levels and Block Trades Point to Strategic Entry Zones

• Current price: $313.32, down 0.25% from prior close but holding above 30D support at $314.03
• Options data: Call open interest dominates (put/call ratio: 0.81), with heavy concentration at $315–$320 strikes
• Block trades: $2.5M put block at $240 strike (Jan 16) and $1.35M call block at $260 strike (Dec 19) hint at institutional positioning

Here’s the takeaway: Alphabet A shows upside potential today. The stock is testing Bollinger Band support while options data and block trades suggest a coordinated push to defend $313 and target $320. Let’s break down why this matters for your strategy.

Bullish Imbalance in Options and What Block Trades Reveal

The options chain tells a clear story. For this Friday’s expiration, 9,982 open calls at the $320 strike (GOOGL20251226C320) dwarf put activity, with the top puts clustered at $312.5 (7,708 OI). This isn’t just noise—call dominance at $315–$320 suggests institutional players are hedging for a rebound above the 30D moving average ($306.54).

But don’t ignore the block trades. The GOOGL20260116P240 put (Jan 16 expiration) saw a $2.5M trade, which could signal a hedge against the EU fine’s long-term impact. Meanwhile, the GOOGL20251219C260 call (Dec 19) was bought in bulk, hinting at short-term optimism ahead of earnings. These moves create a tug-of-war: bulls are betting on AI-driven ad growth, while bears price in regulatory risks.

News Flow: AI Wins vs. Regulatory Headwinds

Alphabet’s recent news is a mixed bag. The AI-powered search rollout and $15B buyback are tailwinds, but the €3.2B EU fine adds friction. Here’s the kicker: options activity discounts the regulatory risk. The $315 call OI (next Friday’s GOOGL20260102C315) suggests traders expect the AI-driven revenue boost to outweigh the fine’s drag. That’s a key insight—market sentiment is pricing growth optimism ahead of compliance costs.

Actionable Trade Ideas for Today

For options traders:

• Buy the GOOGL20260102C315 call (next Friday’s $315 strike) if GOOGL breaks above $314.97 (30D resistance). Target $320 for 3.2% gain.
• Sell a put spread at $312.5–$300 (using GOOGL20260102P312.5 and GOOGL20260102P300) to collect premium while capping downside risk.

For stock traders:

• Enter long near $313.32 if price holds above the lower Bollinger Band ($299.96). First target: $315 (30D resistance), then $320 (call-heavy zone).
• Stop below $312.5 to avoid a breakdown into the 200D support range ($162–$166).

Volatility on the Horizon

The next 72 hours will test GOOGL’s resolve. A close above $315 would validate the bullish case, triggering call options and buybacks to drive momentum. But a drop below $312.5 could reignite the EU fine narrative. Your edge? The options data already prices in a $320 target—so the real question is whether fundamentals can match that optimism. Either way, the setup offers clear entry/exit points for both bulls and bears. Stay nimble, and let the data guide your next move.