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

• GOOGL drops 1.38% today, trading at $305.01 amid a short-term bearish Kline pattern but long-term bullish moving averages.
• Options data shows heavy call open interest at $335 and $325 strikes, with a put/call ratio of 0.805 (calls dominate).
• Block trades reveal $1.35M bought in 260C calls for Friday and $720K in 235P puts for March 2026—hinting at mixed institutional bets.

Here’s the core insight: despite today’s dip, options market sentiment leans decisively bullish, with heavy call positioning and block trades suggesting a potential rebound. The stock’s long-term structure remains intact, but short-term volatility could test key support levels. Let’s break it down.

What the Options Chain and Block Trades Reveal

The options market is painting a clear picture: traders are stacking up for a rebound. The top OTM call strikes ($335, $325, $330) have combined open interest of 71,942 contracts expiring this Friday (Dec 19), while puts at $290 ($21,285 OI) and $300 ($14,989 OI) show defensive positioning. The put/call ratio of 0.805 means calls dominate by 24%, a strong bias for upside.

But it’s the block trades that catch attention. A $1.35M purchase of GOOGL20251219C260 calls (expiring this Friday) signals aggressive near-term bullishness. Meanwhile, a $720K buy of GOOGL20260320P235 puts (March 2026) suggests hedging against deeper declines. The $2.54M trade in GOOGL20260116P240 puts (Jan 16, 2026) adds to the bearish undercurrent—but the sheer volume of calls still tips the scales.

News Flow: SpaceX Gains and AI Momentum Fuel Optimism

Alphabet’s recent headlines are a mixed bag. The $800B SpaceX valuation boost could translate to an $8B+ unrealized gain on its earnings, a tailwind for Q4 results. Separately, Bank of America’s $1T AI revenue forecast for Alphabet—$500B from cloud, $400B from ads—positions the stock as a long-term winner in AI monetization. These narratives align with the call-heavy options data: investors are pricing in future growth, even if the stock dips today.

However, the current price ($305.01) is below the 30D support zone ($283.93–$284.88). If it breaks that, the 200D support ($162.57–$166.15) looms as a distant floor. But with RSI at 57.07 (neutral) and MACD crossing below the signal line, a rebound could be imminent.

Actionable Trading Setups

For options traders, the most compelling plays are:

• GOOGL20251219C325 (this Friday’s $325 call): With 15,535 contracts in open interest, this strike is a magnet for liquidity. If the stock rebounds above $308.58 (Bollinger middle band), this call could see explosive volume.
• GOOGL20251226C330 (next Friday’s $330 call): A safer bet for a gradual bounce, with 4,999 OI. Ideal if the stock tests support and bounces.

For stock traders, consider:

• Entry near $284 (30D support): If the stock holds here, target a retest of the 30D MA at $300.29, then push toward $313.33 (current consensus price target).
• Stop-loss below $278.97 (Bollinger lower band): A break here would validate deeper bearishness, aligning with the $290 put OI.

Volatility on the Horizon

The next 72 hours will be critical. If GOOGL holds above $284 and closes above $308.58, the call-heavy positioning could ignite a short-covering rally. Conversely, a breakdown below $278.97 might trigger a wave of panic selling. Either way, the block trades and options data suggest a high-conviction trade: the market is pricing in a rebound, not a collapse. Stay nimble, and let the data guide your entries.