GOOGL Whales Back $370 Breakout: Options Signal Upside Despite DeepMind Leadership Shake

• Alphabet (GOOGL) is trading at $353.90, down 1.07% as the market digests news of DeepMind’s CEO stepping down.
• Options sentiment remains surprisingly bullish, with a Put/Call Open Interest ratio of just 0.70, suggesting heavy call buying.
• Significant open interest clusters at the $370 and $380 strikes this Friday, creating a clear ceiling and potential magnet for price action.
• Technical indicators like MACD and RSI show strengthening momentum, hinting that the recent dip might be a buying opportunity rather than a trend reversal.

It’s a strange day for Google. The stock is slipping, driven by headlines about Demis Hassabis leaving DeepMind. It’s natural to feel that tug in your gut—leadership changes at the core of an AI powerhouse sound like red flags. But if you look past the headlines and into the options chain, you’ll see something different. The money isn’t running away; it’s positioning for a move up. While the news flow is noisy, the options market is whispering confidence. Let’s break down what’s actually happening with GOOGL today and where the smart money is looking next.

The Options Market Is Betting on $370

Let’s talk about the data, because numbers don’t lie like headlines can. The most telling metric here is the Put/Call Open Interest ratio, which sits at a comfortable 0.70. This means there are significantly more calls in play than puts. In a market where fear usually drives puts, this ratio suggests traders are more interested in upside potential than downside protection.

Looking at the expirations, the story gets clearer. For this Friday’s options, the biggest Open Interest isn’t near the current price of $353.90. It’s sitting well above at the $370 strike (9,477 contracts) and $380 strike (8,787 contracts). These are Out-of-the-Money (OTM) calls. When you see this much OI at these specific levels, it often acts as a magnet or a resistance wall. Traders are betting that GOOGL will climb toward $370.

On the flip side, the put side is lighter. The highest put OI is at $350 (6,763 contracts), which is just below the current price. This $350 level is acting as immediate support. If the stock holds above it, the path of least resistance is up.

We also see some interesting block trades that hint at longer-term conviction. There was a notable sell put trade for GOOGL20260911P355 with a volume of 460 contracts. Selling puts at $355 is a bullish signal—it means a large player is willing to buy the stock at that level if it drops, effectively setting a floor. Meanwhile, a large put purchase at GOOGL20261218P330 suggests some hedging for a deeper, longer-term correction, but it’s isolated. The dominant narrative remains bullish.

News vs. Numbers: The DeepMind Disconnect

The headline about Hassabis stepping down is significant, but is it a dealbreaker? Probably not in the short term. The market is reacting to the uncertainty of leadership, but the fundamentals are screaming growth. Alphabet’s Q2 results showed Google Cloud revenue surging 82% to $24.8 billion. That’s not just growth; that’s acceleration.

Analysts are noting that while the cash flow is under pressure due to massive AI infrastructure spending ($195-$205 billion capex forecast), the returns are starting to materialize. The $25 billion debt offering is a strategic move to fund this growth, not a sign of distress. When you combine the strong cloud backlog ($514 billion) with the options market’s bullish tilt, it’s clear that investors are looking through the leadership noise. They’re focusing on the cash flow potential of the AI infrastructure being built right now. The sentiment is that the new Chief Scientist role will keep the research engine turning, even if the CEO chair changes hands.

Actionable Trades for Today

So, where do you go from here? The technicals support the options data. The RSI is at 54.37, showing room to run without being overbought. The MACD histogram is positive (3.73), and the price is holding above its 30-day and 100-day moving averages. The stock is in a short-term bullish trend within a long-term uptrend.

Here are two specific plays to consider:

1. The Bullish Breakout Play (Stock)

If you’re trading the shares, don’t chase the red candle. Wait for a retest of support. The $350-$352 zone is strong support, backed by the Friday put OI.

• Entry: Consider buying shares near $352 if the price stabilizes there.
• Target: The first major resistance is the $370 call wall. A move to $368-$370 is highly probable if volume picks up.
• Stop Loss: A close below $348 would invalidate the short-term bullish thesis.

1. The Options Leverage Play

If you want to use options, the $370 calls expiring this Friday (GOOGL20260807C370) are the most liquid and sentiment-driven. However, they are expensive due to time decay. A smarter, slightly safer play might be looking at next Friday’s expiration to give the trade a bit more breathing room.

• Recommended Contract: Consider GOOGL20260814C365. This strike is closer to the money than the $370 calls, offering higher delta (sensitivity to price moves) while still benefiting from the bullish trend. The Open Interest at $365 for next Friday is 4,397, showing strong interest in a near-term breakout.
• Strategy: Buy the GOOGL20260814C365 call if the stock breaks above $356.50 (today’s open) with volume. Target a 15-20% return as the stock tests the $370 level.

Volatility on the Horizon

The path ahead for Alphabet isn’t a straight line, but the direction seems set. The combination of strong cloud fundamentals, strategic debt financing for AI growth, and a options market that is clearly favoring calls creates a compelling setup. The DeepMind news is a temporary speed bump, not a roadblock.

Traders should watch the $350 support level closely. As long as it holds, the bias remains bullish. The $370 strike is the immediate goal. If GOOGL can clear that level with volume, the next stop is $380. For now, the data suggests that while the headlines are bearish, the money is bullish. It’s a classic case of letting the options market tell you where the price is actually going, rather than just reacting to the news. Keep an eye on the volume, respect the support levels, and let the trend work for you.