Alphabet (GOOGL) Options Signal Bullish Momentum: Key Strikes and Trade Setups for Jan 16–23, 2026

• Current price: $333.14, down 0.8% from $335.84 close
• Options call open interest dominates at $350 strike (OI: 30,800)
• Put/call ratio for open interest: 0.84 (calls outweigh puts)

Here’s the takeaway: Alphabet’s options market is leaning heavily bullish, with heavy call buying at $350 and $340 strikes. But the stock’s 1.6% drop today and RSI near overbought territory (86.4) hint at a potential short-term correction. Let’s break down what this means for your strategy.

Bullish Sentiment, But Watch for Overbought Pressure

The options chain tells a clear story: traders are betting on a near-term rally. For this Friday’s expiration (Jan 16), the $350 call strike has 30,800 open contracts—the highest of any OTM call. That’s not just noise; it’s a vote of confidence in a $350+ move by expiration. Meanwhile, the $300 put strike (OI: 40,623) shows some hedging activity, but the put/call ratio (0.84) still favors calls.

But here’s the catch: RSI at 86.4 is screaming overbought. If the stock can’t break above the intraday high of $337.69, a pullback to the 30-day support zone ($313.20–$314.00) becomes a real risk. The block trade of 522 puts at the $330 strike (expiring Feb 20) also suggests some big players are hedging against a mid-month dip.

News Flow: AI Deals and Grid Woes Mix Signals

Alphabet’s recent headlines are a mixed bag. The $2.4B carbon-free energy deals with Google and Apple’s Gemini AI partnership are huge tailwinds—these validate its AI infrastructure as a growth engine. But the warnings about U.S. power grid delays for data centers add a layer of uncertainty.

Retail investors are likely parsing this duality: bullish on AI monetization, skeptical about execution risks. That explains the call-heavy options activity—traders are pricing in the AI optimism but keeping a wary eye on the grid challenges.

Actionable Trade Setups: Calls for Short-Term Gains, Cautious Long-Term Plays

For options traders, the most compelling play is the GOOGL20260116C350 call (expiring Friday). With 30,800 open contracts, this strike is the market’s best guess at a near-term target. If the stock closes above $350 by Jan 16, the reward is clear. For a slightly safer bet, the GOOGL20260123C340 (next Friday’s expiration) offers a lower strike with decent liquidity (OI: 5,276).

Stock traders should consider entry near $320–$325 if the price tests the 30-day support level. A break above $337.69 (Bollinger upper band) could trigger a run to $345–$350. But if the stock dips below $313.20, that’s a red flag to reassess.Volatility on the Horizon

The next 10 days will test Alphabet’s resolve. A successful push above $337.69 could validate the bullish options bets and extend the rally. But a failure to hold above $313.20 would force a reevaluation of the long-term trend. Either way, the options market has already priced in a high-probability move—now it’s up to the fundamentals to deliver.

Bottom line: This is a high-conviction trade for the next week, but keep a tight stop below $313.20. The AI narrative is strong, but execution risks linger. Stay nimble.