Alphabet (GOOGL) Options Signal Bullish Bias: Key Strikes and Block Trades Point to $335+ Upside Potential

• Current price: $317.66, up 0.18% with intraday swing between $314.68 and $318.95
• Options data shows 0.795 put/call OI ratio, with next Friday’s $335 call (OI: 24,425) as top bet
• Block trades reveal $1.35M buy of GOOGL20251219C260 and $720K buy of GOOGL20260320P235

Here’s the takeaway: Alphabet’s options market is whispering optimism. With calls dominating open interest and block traders loading up on deep out-of-the-money strikes, the data suggests a strong case for a $318.95 breakout—especially if the Fed’s final rate decision this week leans dovish. But let’s dig into why this setup matters.

Where the Money Is Flowing: Calls Outmuscle Puts, Block Traders Bet Big

The options chain tells a clear story. For next Friday’s expiration (Dec 19), the $335 call (GOOGL20251219C335) leads with 24,425 open contracts—nearly double the nearest rival. That’s not just noise; it’s a vote of confidence in a $335+ move. Meanwhile, puts are clustered at $310 (OI: 24,938) and $290 (OI: 20,256), hinting at cautious downside hedging.

But the real drama? Block trades. A $1.35M purchase of the GOOGL20251219C260 call (strike $260) and a $720K buy of the GOOGL20260320P235 put (strike $235) scream strategic positioning. These aren’t retail bets—they’re institutional moves. The call suggests a near-term bullish play, while the put locks in long-term downside protection.

News That Could Fuel the Fire: AI Wins vs. Regulatory Headwinds

Alphabet’s recent rally—13.9% in November—was powered by its Gemini 3 AI model, which slashes reliance on Nvidia’s chips. That’s a big deal in a sector where hardware costs are a pain point. But here’s the catch: regulators are circling. A new case limiting search result timeframes could pressure ad revenue in the short term.

The options data lines up with this duality. The bullish call bets align with AI-driven optimism, while the put activity reflects caution around regulatory risks. Investors are hedging their bets: they want to ride the AI wave but aren’t ignoring the near-term storm clouds.

Your Playbook: Calls for the Breakout, Puts for the Safety Net

If you’re trading Alphabet today, here’s what to consider:

• For Options Traders: Buy the GOOGL20251219C335 call if the price breaks above $318.95 (intraday high). The $335 strike is a psychological level with heavy OI—price action here could trigger a cascade of stop-loss orders. For a longer-term play, the GOOGL20260320C270 call (OI: 16,293) offers exposure to AI-driven growth, assuming the stock holds above $300.

• For Stock Traders: Consider entry near $314.68 (intraday low) with a tight stop below $310. If the Fed signals rate cuts, target $325 as a first resistance level. For downside protection, a put spread at $310 and $290 could cap losses while the stock consolidates.

Volatility on the Horizon: Balancing AI Hype and Macro Realities

Alphabet sits at a crossroads. The technicals (RSI at 71.5, MACD flattening) suggest a short-term pullback is possible, but the long-term trend (200D MA at $206.73) remains firmly bullish. The key will be how the Fed’s rate decision interacts with Alphabet’s AI momentum. If the Fed cuts rates and markets rotate into growth stocks, the $335+ level could be just the start. But if the Fed leans hawkish, watch for a test of the $300 psychological support.

Bottom line: This is a stock with two speeds—AI-driven optimism and regulatory caution. The options market is pricing in a breakout, but don’t ignore the risks. Position yourself with directional calls and a safety net. The next few days could decide Alphabet’s next chapter.