Alphabet (GOOGL) Options Signal Bullish Breakout Potential: Focus on $335 Calls and $310 Puts as Volatility Rises

• GOOGL plunges 2.8% today to $311.95, breaking below key support levels but showing strong long-term bullish trends.
• Options market shows heavy call open interest at $335 and put open interest at $310, signaling a tug-of-war between bulls and bears.
• Block trades reveal institutional bets on both sides, with a $260 call bought ahead of Dec 19 expiration.

The stock’s sharp drop masks a brewing storm in options: bulls are stacking calls above $330 while bears eye puts at $310. Here’s how to navigate the crossroads.Bullish Pressure vs. Defensive Puts: What the Options Chain Reveals

The options market is split. For this Friday’s expirations, calls at $335 ($GOOGL20251219C335) dominate with 24,057 open contracts, while puts at $310 ($GOOGL20251219P310) hold 24,028 open contracts. It’s a standoff—bulls want a breakout above $322 (the 30D support/resistance level), while bears hedge against a drop below $301 (the middle Bollinger Band).

Block trades add intrigue. A $260 call ($GOOGL20251219C260) was bought in bulk, suggesting big players see value if the stock rebounds. Meanwhile, two $240 puts ($GOOGL20260116P240) traded in large volumes, hinting at long-term bearish positioning. The takeaway? Short-term volatility is high, but the long-term trend remains intact.

News Flow: Earnings Optimism Fuels Bullish Sentiment

Alphabet’s fundamentals are firing. Analysts raised 12-month price targets to $380, backed by 20%+ earnings growth and AI-driven cloud margins. The Zacks Consensus Estimate pegs FY earnings at $10.52/share, up 30.9% YoY. But here’s the catch: the RSI is in overbought territory at 80.05. Think of it like a stretched rubber band—eventually, it snaps. The stock’s 15.2% gain in the past month has created a short-term correction risk, even as long-term bulls stay bullish.

Actionable Trade Ideas: Calls for Breakouts, Puts for Protection

For options traders:

• Buy $335 calls ($GOOGL20251219C335) if GOOGL closes above $322 by Friday. Target: $340. Stop-loss: $325.
• Buy $310 puts ($GOOGL20251219P310) if the stock dips below $301. Target: $290. Stop-loss: $315.

For stock traders:

• Enter long near $301 (the middle Bollinger Band) with a target at $335. Use $284 (30D support) as a hard stop.
• Short-term traders might consider a mean reversion play: buy on a rebound to $322, sell at $330.

Volatility on the Horizon: Preparing for the Next Move

The market is bracing for a decision. If GOOGL holds above $301, the 30D bullish trend could reignite, pushing toward $335. But a breakdown below $284 would trigger a deeper correction, testing the 200D support at $162.57. Either way, the options activity shows conviction—just pick your side before Friday’s expiry.

Final Take: This is a high-stakes chess game. The bulls have the long-term edge, but short-term volatility demands caution. Watch the $322 level like a hawk. If it holds, the $335 calls could be your ticket to a breakout. If not, the puts at $310 offer a safety net. Either way, the market’s already pricing in a move—now it’s your turn to decide which way to bet.