Alphabet (GOOGL) Options Signal Bullish Breakout: Key Strikes and Block Trades to Watch for Dec 12–19 Expirations

• GOOGL down 2.36% at $313.47, trading near 200D MA of $205.37
• Call open interest dominates at $330–$335 strikes, with 24,057 contracts at $335 (next Friday)
• Block trade of 1,000 GOOGL20251219C260 calls suggests institutional bullishness

Here’s the core insight: GOOGL’s options market is loaded with bullish energy, but today’s sharp pullback creates a high-risk, high-reward setup. The stock is testing critical support levels while options traders are aggressively buying calls above $320—hinting at a potential rebound. Let’s break it down.What the Options Chain Reveals About Market Sentiment

The options market is clearly leaning bullish, but not without caution. For this Friday’s expirations, call open interest peaks at $330 ($13,984 contracts) and $325 ($9,222), while puts dominate at $290 ($9,417) and $300 ($8,183). For next Friday, the imbalance widens: calls at $335 ($24,057) and $330 ($15,502) dwarf puts at $310 ($24,028) and $290 ($19,942). This suggests traders expect a rebound above $320 but are hedging against a drop below $300.

The block trades add intrigue. A 1,000-contract buy of GOOGL20251219C260 (strike $260, expiring Dec 19) shows big money is positioning for a rebound. Meanwhile, two large put trades (GOOGL20260116P240) hint at long-term hedging. The takeaway? Bulls are stacking up for a short-term pop, but deep puts suggest some fear of a broader selloff.

How AI News Fuels the Bull Case

Alphabet’s recent headlines about AI partnerships and custom chip development align with the options action. Analysts raising price targets to $380 and the stock’s 30x 2026 earnings multiple show investors are pricing in aggressive AI growth. The RSI near 70 and descending triangle pattern suggest a breakout is imminent—if the stock holds above $301.23 (middle Bollinger Band). But here’s the catch: the MACD histogram is shrinking (13.72 vs. signal line 13.24), which could signal momentum is slowing. Don’t ignore the risk of a false breakout.

Actionable Trade Ideas for TodayFor Options Traders:

• Buy GOOGL20251212C330 (Dec 12 expiry, $330 strike): If GOOGL closes above $320 by Friday, this call could catch a rebound.
• Buy GOOGL20251219C335 (Dec 19 expiry, $335 strike): A safer bet if the stock tests $313.47 support and bounces.
• Sell GOOGL20251219P310 (Dec 19 put, $310 strike): Collect premium if you’re bullish but want downside protection.

For Stock Traders:

• Entry near $313.47 (current price) with a target at $325 (resistance from 30D support level).
• Stop-loss at $301.23 (middle Bollinger Band) to protect against a breakdown.
• Consider scaling in if the stock dips to $284.06 (30D support) but only if volume surges—this could trigger a short-covering rally.

Volatility on the Horizon

The Schaeffer’s Volatility Index (29%) and 85/100 Volatility Scorecard suggest wild swings are coming. With AI hype and earnings season approaching, GOOGL could test $335 by Dec 19—or drop below $290 if the AI narrative falters. The key is to stay nimble: use next Friday’s options to lock in targets, and watch for a volume spike at $320 as a bullish confirmation. This isn’t a long-term buy—it’s a tactical play on a stock teetering between momentum and exhaustion.