Alphabet (GOOGL) Options Signal Bullish Setup: Target $335 as Calls Dominate and Analysts Upgrade

• GOOGL trades at $309.69, down 0.88% from $312.43 after a volatile session between $305.56 and $314.85.
• Options data shows heavy call open interest at $335 (next Friday) and $325 (this Friday), while puts cluster at $300 and $290.
• Analysts from Mizuho and TD Cowen raised price targets to $365 and $350, citing AI-driven growth in Gemini and Google Search.

Here’s the core insight: options market sentiment and technicals align for a bullish breakout. The stock is testing key support at $307.05 (Bollinger Middle Band) while call options dominate open interest, suggesting a potential rally toward $335. But watch for short-term volatility from OpenAI’s GPT-5.2 launch and block trades hinting at hedging activity.

Bullish Pressure vs. Institutional Hedges

The options chain tells a story of conflicting signals. For this Friday’s expiration, calls at $325 ($OI: 13,954) and $317.5 ($OI: 11,263) show retail and institutional bets on a rebound. But next Friday’s data is more telling: GOOGL20251219C335 ($OI: 24,309) and GOOGL20251219C330 ($OI: 19,562) dominate, indicating a strong conviction in a $330+ move. Puts at $300 ($OI: 11,445) and $290 ($OI: 20,176) for next Friday suggest hedgers are bracing for a pullback.

Block trades add intrigue. A $1.355M buy of GOOGL20251219C260 (strike $260) and a $720K buy of GOOGL20260320P235 (strike $235) hint at a mixed playbook: some players are bullish on near-term AI-driven gains, while others are hedging long-term downside risk. The put/call ratio of 0.79 (calls > puts) reinforces the bullish tilt.

News-Driven Narrative: AI Optimism vs. Short-Term Jitters

Analysts are bullish on Alphabet’s AI integration. Mizuho’s $365 target and TD Cowen’s $350 upgrade hinge on Gemini’s user growth (now 850M by year-end) and Google Search’s AI-driven engagement. But OpenAI’s GPT-5.2 launch caused a knee-jerk sell-off, dragging GOOGL down with broader AI sector weakness. This creates a buy-the-dip scenario for long-term holders.

The key question: Will investors treat OpenAI’s upgrade as a temporary setback or a structural threat? Given Waymo’s AV partnerships and Google Ads’ dominance, the latter seems unlikely. But short-term volatility is probable until the market digests Q4 earnings (expected Jan 2026).

Actionable Trade Ideas

For options traders, consider these setups:

• Breakout Call: Buy GOOGL20251219C330 (strike $330, expiring Dec 19) if GOOGL closes above $314.85 (intraday high). Target $335+ with a stop-loss at $307.05.
• Bull Call Spread: Buy GOOGL20251219C317.5 ($OI: 11,263) and sell GOOGL20251219C330 to cap risk while profiting from a moderate rally.

For stock traders, consider:

• Entry at $307.05 (middle Bollinger Band) with a target of $335 (Mizuho’s price target). Use $300 (lower Bollinger Band) as a stop-loss.
• Short-term swing trade: Buy on a rebound above $314.85, targeting $317.5 (a key call strike) before fading the rally.

Volatility on the Horizon

The next 72 hours will test GOOGL’s resolve. A close above $314.85 could trigger a wave of call options to be assigned, fueling a $330+ move. Conversely, a break below $305.56 (intraday low) would validate the puts at $300. Either way, the block trades suggest smart money is positioning for a volatile January 2026, with Waymo’s AV partnerships and Gemini’s user growth as tailwinds. Stay nimble—this stock isn’t done moving.