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

• GOOGL trades at $332.55, down 1.02% from $335.97, but technicals show short- and long-term bullish trends.
• Options data reveals heavy call open interest at $340–$350 strikes and massive put OI at $300–$200, signaling a tug-of-war between bulls and bears.
• Block trades show big money buying deep puts (expiring Feb 20) as insurance, while call buyers target $340+ breakouts.

Here’s the takeaway: GOOGL’s options market is bullish but cautious. The stock is testing Bollinger Bands’ upper boundary ($334.49) while RSI near 88.5 suggests overbought conditions. Yet call open interest dominates (Put/Call ratio: 0.83), and block trades hint at strategic positioning. This isn’t a one-way bet—it’s a setup for traders who know where to draw the lines.

Bullish Pressure, Bearish Safeguards: Decoding the Options Imbalance

The options chain tells a story of conflicting forces. For this Friday’s expiration, calls at $340–$350 (OI: 14,322–29,737) dominate, suggesting retail and institutional players are betting on a $340+ breakout. But the $300 put strike (OI: 40,986) is a whale-sized bet on downside protection. It’s like a crowd cheering for a rally while hedging against a slip.

The block trades add intrigue. A 900-lot of GOOGL20260220P330 (Feb 20 put) and a 500-lot of GOOGL20260320P300 (March 20 put) show big players are locking in downside insurance. This isn’t panic—it’s preparation. If the stock dips below $313.20 (30D support), those puts could trigger a cascade of selling pressure.

News-Driven Narrative: AI Alliances and Market Cap Milestones

Alphabet’s recent $4 trillion market cap and Apple partnership are fueling bullish sentiment. The Gemini-AI integration and cloud deals with Apple and Nvidia are positioning GOOGL as a key player in the AI infrastructure race. But here’s the catch: analyst price targets (avg. $321.50) are below the current price. That $321.50 level is a psychological hurdle—investors are betting on long-term AI growth but wary of near-term margin pressures from capital expenditures.

The news also highlights Gemini’s expanding reach into Gmail, Search, and enterprise solutions. This could drive monetization through subscriptions and cloud contracts. However, privacy concerns and regulatory scrutiny remain risks. The stock’s 75% gain over the past year means any correction feels amplified, and the options market is pricing in that tension.

Actionable Trade Ideas: Calls for Breakouts, Puts for Protection

For options traders, the most compelling plays are:

• Bullish: Buy GOOGL20260123C340 (next Friday’s $340 call) if the stock closes above $334.49 (Bollinger upper band). The RSI suggests a pullback is likely, but a break above this level could trigger a rally toward $350.
• Bearish: Buy GOOGL20260116P300 (this Friday’s $300 put) as insurance if the stock dips below $315.16 (middle Bollinger band). The 30D support at $313.20 is a critical level to watch.

For stock traders, consider:

• Entry near $313.20 (30D support) with a stop-loss below $300. Target: $340 if the $334.49 resistance breaks.
• Short-term scalp: Sell into strength if the stock rallies above $334.94 (intraday high) with a tight stop at $330.48 (intraday low).

Volatility on the Horizon: Balancing Bullish Momentum and Bearish Caution

Alphabet’s story is a classic case of long-term optimism vs. short-term pragmatism. The technicals and options data suggest a stock primed for a breakout—but not without risks. If the $340 call strikes get tested, we could see a surge toward $350. But a breakdown below $313.20 would validate the puts at $300 and force a reevaluation of the AI-driven narrative.

The key takeaway? Position yourself for both outcomes. Use the $340 calls as a leveraged play on the bullish case, and the $300 puts as a hedge against a potential AI hype correction. In a market where every $1 move feels like $10, discipline in entry/exit points is everything.