Alphabet A (GOOGL) Options Signal Bullish Rebound: Key Strikes and Whale Moves to Watch

• GOOGL plunges 2.8% to $297.97, breaking below its 30D moving average of $301.95
• Options market shows 25% more open interest in calls than puts, with heavy concentration at $300 and $335 strikes
• Block traders just bought 1,000 calls at $260 ahead of Friday’s expiry

Here’s the thing: when a stock drops 3% in a single session but options traders are loading up on calls, it usually means one of two things – either a rebound is coming, or the bears are setting a trap. With GOOGL’s technicals and options flow pointing in opposite directions, today’s move feels like that moment when you’re watching a storm roll in but the radar shows a break in the clouds ahead.

Where the Money Is Flowing: Calls at $300, Puts at $290, and Whale Moves to Note

Let’s start with the options map. This Friday’s chain shows heavy call open interest at $300 (18,915 contracts) and $317.50 (18,545), while puts pile up at $290 (22,026) and $280 (10,278). It’s like watching a tug-of-war where both sides are digging in – bulls want a bounce, bears expect a breakdown.

The real intrigue comes from block trades. Someone just bought 1,000 calls at $260 (GOOGL20251219C260) expiring this Friday, paying $1.355 per contract. That’s a $1.355 * 1,000 = $1.355 million bet the stock will pop above $260 by expiry. Meanwhile, two separate puts at $240 (GOOGL20260116P240) saw 2,550 contracts traded for $1.005 million total – suggesting long-term hedging against a potential earnings miss or AI investment overhang.

The Quiet News Factor: Why Silence Speaks Volumes

You might be wondering – where’s the news? The lack of headlines is telling. When a $2T company drops 3% without a press release, it usually means the market is voting with its feet over fundamentals. Think of it like a stock market version of "the calm before the storm" – no earnings report, no product launch, just pure algorithmic trading pressure. This makes the options flow even more critical – we’re seeing sentiment without the narrative.

Your Playbook: 3 Ways to Position for the Rebound

1. Options Play: Buy GOOGL20251219C300 calls at $1.25 (current bid/ask). Why? The $300 level is just 3% above current price, and with 20,000+ contracts of open interest, this is where a rebound would find immediate liquidity. If price holds above $296.54 (today’s low), these calls could double in value by Friday.

1. Stock Play: Consider entries near $288.60 (lower Bollinger Band) or $284.88 (30D support). Set stop-loss below $283 if using the lower band, with first target at $301.95 (30D MA) and second at $311.25 (middle Bollinger Band).

1. Bear Hedge: For the cautious, buy GOOGL20251226P290 puts at $2.10. This gives extra time (until next Friday) to play the downside while keeping the bullish call position active. It’s like having your cake and eating it too – you profit if the stock rebounds, but protect against a breakdown below $288.

Volatility on the Horizon: What’s Next for GOOGL

The RSI at 32 suggests we’re in oversold territory, but the MACD histogram (-2.93) still shows bearish momentum. This is the classic "sell the news, buy the fact" scenario. My read? The stock could test $283 support first, but if it holds, we might see a bounce back toward $306 (previous close). The block trades at $260 and $240 suggest institutional players are preparing for both outcomes – which means retail traders should watch those levels closely.

One last thought: when you see a stock like GOOGL trading below both its 30D and 200D moving averages but with call options outpacing puts 25% in open interest, it’s like seeing a compressed spring. The question isn’t if it will bounce – it’s when. And right now, the options market is giving us a roadmap.