GOOG Options Signal Bullish Bias: Calls at $350 Dominate as AI News Fuels Long-Term Optimism

• GOOG trades at $333.81, down 0.74% from its 2026 high of $338.13
• Call open interest surges at $350 strike (25,464 contracts) for Friday expiration
• RSI near overbought territory (83.83) while MACD histogram hits 1.62
• Google’s AI advancements and grid partnership news clash with energy infrastructure risks

Here’s the takeaway: GOOG’s options market is betting big on a near-term rebound, with heavy call buying at $350 and $340 strikes. Technicals suggest a short-term bullish breakout, but grid delays could cap long-term gains. Let’s break it down.Bullish Calls at $350 Signal Breakout Expectations

The options chain tells a clear story: traders are piling into calls above the current price. For Friday expiration (Jan 16), the $350 call (GOOG20260116C350) leads with 25,464 open contracts—nearly double the next strike. This suggests a strong conviction that GOOG will punch through its 52-week high of $338.13 and test $350 before the weekend.

But it’s not all one-sided optimism. The put/call ratio for open interest is 0.82, meaning calls still dominate, but the $320 put (GOOG20260116P320) has 14,706 contracts outstanding. That’s a key support level to watch—if GOOG dips below $333.49 (today’s low), that strike could see action.

No major block trades skewed the market today, so this is retail and institutional money flowing steadily into the $350 call. The risk? If the stock stalls near $335 (Bollinger Band middle at $317.44 feels too far), those calls could expire worthless.

AI News Fuels Long-Term Optimism, Grid Woes Add Friction

Google’s Gemini AI updates and its 1.17 GW PPA with Clearway Energy are major positives. The AI personalization feature directly ties user engagement to revenue, while the carbon-free energy deal supports data center expansion—a win for sustainability goals. But the grid delays highlighted by executives are a red flag. If infrastructure can’t keep up, those AI ambitions might stall.

ARK Invest’s bearish take on Apple’s AI dependency adds context. While that’s not directly bad for GOOG, it underscores how critical Google’s AI infrastructure leadership has become. The market is pricing in continued dominance—but only if the power grid cooperates.

Trade Ideas: Calls for Short-Term Gains, Stock for Breakouts

For options traders, the GOOG20260116C350 call is the most compelling. With the stock trading at $333.81, a move to $350 would give this contract 5%+ gains in a day. If you prefer a longer timeline, the GOOG20260123C340 (expiring Jan 23) offers a slightly safer play with 30,000+ contracts outstanding.

Stock buyers should target an entry near $315 (30-day support range). A break above $335.13 (Bollinger Band upper) would validate the bullish case, with $340 as a first target. Stop-loss below $313.65 (200D support) would protect against a surprise selloff.

Volatility on the Horizon: Balancing Bullish Momentum and Infrastructure Risks

The next 72 hours will test GOOG’s resolve. A close above $338.13 (today’s high) would align with the 30D moving average ($317.09) and fuel a run at $350. But grid-related news could introduce headwinds. For now, the options market is pricing in a 5%+ move higher—take that as both an opportunity and a warning.

Bottom line: This is a stock with momentum and purpose. The AI bets are paying off, but the real game is in how Google navigates its energy bottleneck. Trade accordingly.