Alphabet (GOOGL) Options Signal Bullish Setup: $335 Call OI and Block Trades Point to AI-Driven Breakout

• GOOGL trades at $307.65, down 0.53% with volume surging to 17.9M shares
• Options data shows 22,785 open contracts at the $335 call (this Friday’s expiry) vs. 21,285 puts at $290
• Block trades reveal $1.35M bought in $260 calls (expiring 12/19) and $720K in $235 puts (expiring 3/20)

Here’s the takeaway: options market sentiment is skewed bullish despite today’s dip. The call/put open interest ratio (0.805) and block trades suggest smart money is positioning for a rebound—likely fueled by Alphabet’s AI-driven revenue tailwinds. Let’s break down why this could be a setup to watch.

What the Options Chain Reveals About Market Sentiment

The options market isn’t just a numbers game—it’s a psychological battlefield. Right now, calls dominate at the $335, $330, and $350 strikes (all expiring 12/19), with the $335 call holding the highest open interest. That’s not random. Traders are pricing in a potential rebound above $311.42 (today’s high) to test those strikes.

But here’s the catch: puts at $290 and $300 (lower band at $278.97) are also heavily traded. If the stock dips below $304.88 (intraday low), those puts could trigger a short-covering rally. The block trades add intrigue—2,000 puts at $240 (expiring 1/16/2026) and 1,000 calls at $260 (12/19) suggest institutional players are hedging long-term bets while securing near-term upside.

Why AI and Cable Disruption News Matter for GOOGL’s Price Action

Alphabet isn’t just trading on options chatter—it’s backed by real-world catalysts. Bank of America’s $1 trillion AI revenue projection isn’t just a headline; it’s a structural shift that justifies the call-heavy positioning. The YouTube TV “skinny” bundles targeting cable companies? That’s a direct threat to legacy revenue streams, and investors love disruption stories.

Don’t sleep on the SpaceX valuation surge either. Alphabet’s minority stake could generate an accounting windfall, boosting earnings reports. This isn’t just Wall Street optimism—it’s a multi-pronged attack on growth narratives that could push the stock past $330.

Actionable Trade Ideas for GOOGL

For options traders, the GOOGL20251219C330 call (expiring Friday) is a high-conviction play. If the stock breaks above $308.58 (middle Bollinger Band), this strike could see significant gamma-driven acceleration. For a longer-term angle, the GOOGL20251226C355 (next Friday’s expiry) offers leverage if the AI narrative gains momentum.

Stock traders should watch key levels:

• Entry: Consider buying dips near $300 (30D support at $284.88 is a hard stop)
• Targets: $322.10 (psychological resistance) and $335 (call-heavy zone)
• Stop: Below $290 (put-heavy support; failure here could trigger a test of $278.97)

Volatility on the Horizon

Alphabet’s story is a classic case of short-term noise vs. long-term momentum. The MACD histogram (-2.08) hints at near-term bearish pressure, but the 30D MA at $300.29 and 200D MA at $208.85 tell a different tale. This stock isn’t just riding AI hype—it’s building infrastructure for a future where cloud, silicon, and subscriptions drive margins.

Bottom line: options data and fundamentals are aligned. If you’re not already positioned, this week’s expiry cycle offers a clean entry. But keep your stops tight—volatility isn’t going away anytime soon.