AVGO at Crossroads: $340 Put Wall vs $360 Call Ceiling – How to Play the AI Giant’s Volatility

• AVGO trades at $349.33, down 0.8% intraday, with RSI in oversold territory (36.27) and Bollinger Bands hinting at a potential rebound.
• Options market shows bearish bias: Put/call open interest ratio at 1.03, with $340 puts (OI: 7,323) and $360 calls (OI: 9,462) as key battlegrounds.
• AI-driven revenue hit $19.8B in Q4, but insider selling and margin concerns create a tug-of-war between optimism and caution.

The stock is caught in a tight squeeze between a $340 put wall and a $360 call ceiling. Here’s how to navigate it.The $340 Put Wall and $360 Call Ceiling: A Battle for Control

Options traders are hedging for a dip, with 7,323 open $340 puts (expiring Jan 2) acting as a magnet for downside protection. But the RSI’s oversold reading and the 30D support level at $339.93 suggest a rebound could be near. Meanwhile, 9,462 open $360 calls (Jan 2) signal a psychological resistance—break above this, and the 100D MA at $343.88 becomes a stepping stone to the 200D MA at $286.77.

The put/call imbalance isn’t a red flag—it’s a setup. If the stock tests $340, those puts could trigger a short-covering rally. But watch for a breakdown below $338.30 (200D support), where the $310 puts (OI: 3,068) might dominate next week’s action.

AI Growth vs Insider Selling: Can the Bull Case Survive?

Broadcom’s AI networking dominance—Tomahawk 6 chips powering 30% of its revenue—is a tailwind. But insider selling (524K shares worth $195M in 90 days) adds friction. The recent Q4 beat ($18B revenue, 74% AI growth) should buoy the stock, yet the 100-basis-point margin warning keeps bears in play.

This is a stock where fundamentals scream buy but sentiment whispers wait. The $340 put wall reflects that tension—traders are pricing in a dip but betting on a rebound. If AI demand accelerates in 2026, the $360 call ceiling could crumble.

Trade Ideas: Stock and Options Plays for the $340–$360 Range

• For options: Buy AVGO20260102P340 (Jan 2 $340 puts) if AVGO dips below $349.50. Target a 10–15% move if the stock holds $338.30. Alternatively, go long AVGO20260102C360 (Jan 2 $360 calls) if the price breaks above $350.20. The 30D MA at $364.91 could be the next target.
• For stock: Consider entry near $340 if support holds, with a stop-loss below $338.30. A breakout above $360 could target the 30D MA at $364.91. For a safer play, buy the dip near $344.69 (intraday low) with a $341.67 floor.
• Next-week options: If AVGO rallies, eye AVGO20260109C400 (Jan 9 $400 calls) as a high-risk, high-reward play. The $400 strike is a stretch but aligns with the 200D MA’s upward trajectory.

Volatility on the Horizon: A Setup for 2026

Broadcom’s story is a classic tug-of-war between AI-driven optimism and margin-driven caution. The options data and technicals point to a stock teetering on the edge of a breakout or breakdown. If the $340 put wall holds, this could be a low-risk entry for a stock with a $64B revenue engine. But if the $360 ceiling cracks, the 200D MA at $286.77 becomes a distant memory.

The key takeaway? This is a stock where patience pays off. Watch the $340–$360 range like a hawk. A single candlestick could tip the scales—and the options market is already pricing for it.