Alphabet (GOOGL) Options Signal Bullish Bias: Key Strikes at $335 and $290 Offer Strategic Entry Points for Traders

• GOOGL trades at $304.71, down 1.14% from $308.22, with intraday lows near $302.59
• BMO Capital raised its price target to $343, citing 39%+ cloud growth and AI momentum
• Open interest favors calls (2.5M) over puts (1.6M), with heavy call OI at $335 and $340 strikes

Here’s the thing: GOOGL’s options market is whispering a story of cautious optimism. Short-term technicals hint at a pullback, but long-term bullishness—backed by AI and cloud momentum—keeps the stock anchored above key support. Let’s break down what traders should watch today.

Where the Money Is Flowing: Calls at $335, Puts at $290, and Whale Moves to Watch

The options chain for this Friday (Dec 19) shows a clear imbalance. Calls at $335 ($GOOGL20251219C335) and $340 ($GOOGL20251219C340) dominate open interest, with 22,532 and 17,593 contracts respectively. These strikes sit just below the upper Bollinger Band ($335.64), suggesting some traders are pricing in a potential rebound. On the put side, $290 ($GOOGL20251219P290) leads with 21,763 contracts, but the volume at $230 ($GOOGL20251219P230) feels more like noise than a meaningful risk signal.

Block trades add intrigue. A 1,000-lot buy of $260 calls ($GOOGL20251219C260) for $1.355M hints at near-term bullishness, while a 2,000-lot put trade at $240 ($GOOGL20260116P240) points to longer-term hedging. The message? Institutional players are hedging against a near-term dip but remain confident in the stock’s ability to rebound.

News That Could Tip the Scales: Cloud Growth vs. Cybersecurity Cuts

BMO’s $343 price target isn’t just a number—it’s a signal. The firm’s 39% cloud growth forecast lines up with GOOGL’s recent renewable energy and AI partnerships. Projects like the Rajasthan solar farm and TotalEnergies PPA reinforce Alphabet’s long-term value proposition. But the discontinuation of the Dark Web Report could spark short-term jitters among privacy-focused investors. That said, the broader narrative—enterprise AI adoption and cloud dominance—overrides this minor setback.

Actionable Trades: Calls for the Rally, Puts for the Safety Net

For options traders, the $335 call ($GOOGL20251219C335) is a high-conviction play if GOOGL breaks above $310.18 (middle Bollinger Band). A tighter setup: buy the $330 call ($GOOGL20251219C330) with a stop below $302.59. On the downside, a put spread at $290 ($GOOGL20251219P290) and $230 ($GOOGL20251219P230) could hedge against a sharp drop, though the $230 strike feels overly pessimistic.

Stock traders should consider entry near $302.59 if support holds. A break above $310.18 targets $317.50 (a key call OI level), while a drop below $284.71 (lower Bollinger Band) would test 200D support at $162.57—unlikely, but worth monitoring.

Volatility on the Horizon: Balancing Bullish Momentum and Short-Term Noise

The RSI at 39.7 and MACD histogram (-2.56) suggest the pullback isn’t over yet. But with BMO’s $343 target and block trades favoring calls, the long-term trend remains intact. Traders should treat today’s dip as a buying opportunity for those aligned with the stock’s AI and cloud story. Just keep a tight stop below $284.71 to avoid getting whipsawed by short-term volatility.