Alphabet (GOOGL) Options Signal Bullish Bias: Key Strikes and Block Trades Point to $310 Entry Opportunity

• GOOGL surges 2.16% to $303.14, trading near 30D support at $284.88 and 200D support at $166.15
• Options data shows 0.81 put/call ratio (bullish skew) with heavy call open interest at $335 and $340 strikes
• Block trades reveal $1.35M call purchase at $260 strike (expiring 12/19) and $720K put buy at $235 strike

The market is whispering optimism—GOOGL’s 2.16% intraday rally and skewed options positioning suggest a potential breakout above key resistance. While technicals hint at short-term bearishness, the options data and block trades tell a different story. Here’s why traders should watch $310 as a critical inflection point.Bearish Patterns Clash with Bullish Options Flow

The candlestick chart shows a short-term bearish engulfing pattern (a red flag for near-term momentum), but the options market isn’t buying it. Call open interest dominates at $335 (OI: 24,354) and $340 (OI: 17,528), while puts pile up at $290 (OI: 22,351). This creates a tight "bull trap" scenario: traders are hedging for a dip but betting heavily on a rebound.

The most telling move? A block trade of 1,000 calls at $260 (GOOGL20251219C260) this Friday. That’s not just noise—it’s institutional money betting on a sharp rebound before year-end. But don’t ignore the risk: $290 puts (OI: 22,351) could ignite if macroeconomic fears resurface.

News Adds Nuance to the Narrative

Alphabet’s pre-market drop (3.14%) was driven by macroeconomic jitters, not earnings misses or ad revenue slumps. The AI roadmap remains intact, and Iowa State Bank’s 20.1% position boost in Q3 shows long-term conviction. Yet CEO Pichai’s recent $63M insider selling (mostly at $299.80) adds a layer of caution.

Here’s the twist: The market’s focus on valuation recalibration (not fundamentals) means GOOGL could rebound if the Fed signals rate-pause optimism. The options data already prices in this scenario—traders are just waiting for confirmation.

Actionable Trade Setups for TodayFor Options Traders:

• Bullish Play: Buy GOOGL20251219C310 (strike price $310) if price breaks above today’s high of $303.3. Target $335 (Bollinger Upper Band) with a stop below $299.23.
• Bearish Hedge: Buy GOOGL20251219P290 to protect against a pullback. Use the $290 strike as a floor for a potential mean reversion trade.

For Stock Traders:

• Entry at $299.23 (intraday low) if price holds above 30D MA ($302.59). Target $315 (RSI 28.27 suggests oversold rebound potential).
• Aggressive Buy: If GOOGL closes above $303.3 today, consider entries between $303–$305 with a tight stop at $299.23.

Volatility on the Horizon

The next 72 hours will test GOOGL’s resolve. A break above $303.3 could trigger a short-covering rally fueled by the $335 call wall. But a close below $299.23 would validate the bearish engulfing pattern and reignite the $290 put battle.

Bottom line: This is a high-conviction setup. The options data and block trades scream for a $310+ move, but technicals demand respect for the $299.23 support. Play it smart—use tight stops and scale in as the $303.3 level holds. The AI giant isn’t done yet.