Alphabet (GOOGL) Options Signal Bullish Bias: Key Strike Levels and Trade Setups for Jan 16–23 Expirations

• GOOGL trades at $332.62, down 1% from its 52-week high of $335.97, but remains above all major moving averages.
• Options open interest shows a 22% call bias (put/call ratio: 0.83), with heavy call volume at $340–$350 strikes.
• Block trades reveal large put purchases at $330 and $300 strikes, hinting at hedging or bearish positioning beyond January.
• Recent Apple partnership and AI advancements validate bullish momentum, but margin pressures and regulatory risks linger.

The options market is whispering a clear message: bulls are in control, but bears aren’t backing down. With technicals aligned for a short-term breakout and a $4 trillion market cap in play, GOOGL sits at a crossroads of opportunity and caution. Let’s break down what the data really means for traders this week.Bullish OI Clusters and Bearish Hedging: A Tale of Two Expirations

The options chain tells a story of conflicting narratives. For this Friday’s expirations (Jan 16), GOOGL20260116C340 and GOOGL20260116C350 calls dominate open interest, with 14,322 and 29,737 contracts outstanding, respectively. This suggests a strong bid for a $340–$350 price target by expiration. The RSI at 88.55 and MACD above its signal line (7.02 vs 5.46) back this up—momentum is clearly to the upside.

But don’t ignore the puts. The $300 strike (40,986 OI) and $200 strike (32,188 OI) show heavy bearish positioning, especially for longer-dated options. The recent block trade of 900 GOOGL20260220P330 puts ($330 strike, Feb 20 expiration) adds intrigue. This isn’t just noise—it’s a hedge against a potential pullback in late January or early February. Think of it like a storm cloud on the horizon: the sun’s shining now, but you might want an umbrella later.

Apple’s AI Bet Validates the Bull Case—But Risks Remain

The partnership with Apple isn’t just a headline. By embedding Gemini AI into Siri and Apple Intelligence, Alphabet is turning its AI infrastructure into a cash engine. Bank of America’s $370 price target hinges on this monetization, and the $4 trillion market cap already reflects some of that optimism. But here’s the catch: AI infrastructure costs are rising, and regulatory scrutiny of big tech deals could delay timelines. The block trades at $300–$330 strikes might be a response to these risks, not just a bearish bet.

Actionable Trade Setups for This Week and Next

For options traders, the GOOGL20260116C340 call is a high-conviction play. If GOOGL holds above its 30-day support at $313.20, this strike could see a 10–15% move by Friday. For a longer-term angle, the GOOGL20260123C340 call (next Friday’s expiration) offers more time if the stock consolidates. Both benefit from the RSI’s overbought reading—sometimes, the market can’t stay overbought forever, but when it does, the trend continues.

On the stock side, consider entry near $313.20 (30-day support) with a target at $340. If the price breaks below the $313.20–$313.99 range, the 200-day support at $175.30 becomes a critical level to watch. For risk management, a put spread using GOOGL20260123P300 and GOOGL20260123P290 could cap downside while preserving upside potential.

Volatility on the Horizon: Balancing Bullish Momentum and Strategic Hedging

The next two weeks will test GOOGL’s resolve. A breakout above $334.49 (Bollinger Upper Band) could trigger a retest of the $340–$350 call-heavy zone. But don’t ignore the block trades—they hint at a possible correction in late January. Traders should watch the 30-day support ($313.20) like a hawk. If it holds, the bull case remains intact. If it breaks, the puts at $300 and $200 strikes could become a magnet.

In the end, this is a stock at a crossroads. The AI narrative is strong, but execution risks and margin pressures loom. For now, the options market is betting on the bulls—but the bears aren’t sleeping. Stay nimble, and let the data guide your next move.