Alphabet (GOOGL) Options Signal Bullish Bias: Key Strikes and Trade Setups for Feb 6, 2026

• GOOGL plunges 2.14% to $324.15, breaking below its 30-day moving average of $326.91
• Options market shows 0.84 put/call ratio (call bias) with heavy call open interest at $360 and $345 strikes
• J.P. Morgan upgrades GOOGL to Buy with $395 target amid AI-driven cloud growth and $175B capex plan

Here’s the core insight: Options traders are pricing in a bullish rebound despite today’s selloff. The stock’s 2.14% drop has created a short-term buying opportunity aligned with long-term AI and cloud momentum. Let’s break down why this dip could be a setup for upside—if key support holds.

Options Flow Reveals Bullish Skew: Calls at $360 and $345 Dominate

The options market isn’t panicking. For Friday’s expiration, GOOGL20260213C360 (17,356 open interest) and GOOGL20260213C345 (14,624 OI) show heavy call buying at strikes 8–12% above current price. This suggests institutional players are hedging for a rebound or anticipating a short-term pop.

But don’t ignore the puts: GOOGL20260213P310 (23,343 OI) is the largest put position, signaling a risk of a breakdown below $312.92 (200D support). The block trades add intrigue—1,750 contracts of GOOGL20260320C340 sold today for $835,000. That’s a hedge against March expiration, implying sellers expect limited upside before then.

Bullish News Flow Justifies Options Optimism

Alphabet’s Q4 results were a mixed bag. Revenue hit $102.35B, but shares dipped on worries about $175B in AI spending. Here’s why that’s a feature, not a bug:

• Google Cloud grew 48% YoY to $17.7B—30.1% operating margins show this isn’t just burning cash
• J.P. Morgan’s $395 price target (18.8% upside) is backed by 61.6% historical success rate on calls
• $24B in Q4 free cash flow gives room to fund AI bets while maintaining dividends

The market’s underestimating how AI spending will turbocharge cloud and search revenue. Think of it like planting a garden: today’s $175B investment is fertilizer for 2027’s harvest.

Actionable Trade Setups: Calls, Puts, and Stock Entries

For options traders:

• Buy GOOGL20260213C332.5 (strike $332.5, next Friday’s expiry) at $3.50–$4.00. If GOOGL rebounds above its 200D MA, this call could double as volatility unwinds.
• Sell puts at GOOGL20260213P315 (8,539 OI) for $3.20–$3.50. Collect premium while establishing a bullish bias—if the stock holds above $315, you’re ahead.

For stock players:

• Enter long positions near $312.92 (200D support). Stop-loss below $307.55 (lower Bollinger Band). First target: reclaim $335.71 (30D resistance), then push toward $343.16 (upper Bollinger Band).
• Consider a bullish calendar spread using March’s GOOGL20260320C340 block trade. Buy the March 340 call if the stock stabilizes above $325.

Volatility on the Horizon: What to Watch

The next 72 hours will test GOOGL’s resolve. If the stock closes above $330.33 (today’s high), the bearish histogram on MACD could reverse. But a close below $319.92 (intraday low) would validate the puts at $310. Either way, volatility is your friend—especially with next Friday’s options expiring in a tight range ($300–$360).

This isn’t just a stock move. It’s a battle between short-term pain (AI spending) and long-term gain (cloud dominance). Right now, the options market is betting on the latter. Would I put my money where their mouths are? You bet—but only after confirming support holds.