AVGO Options Signal $310–$350 Battle: How to Play the AI Chip Giant’s Volatile Setup

• AVGO’s price action is caught between a short-term bearish Kline pattern and long-term range-bound momentum.
• Options data shows heavy call open interest at $350 and $330, while puts pile up at $310 and $300.
• Analysts are bullish on AI-driven growth, but CEO Hock Tan’s recent insider selling adds caution.

Here’s the thing: AVGO’s options market is screaming about a critical price war between $310 and $350 this week. With technicals pointing to a weak near-term trend and options positioning hinting at both bullish and bearish bets, this stock is a high-stakes chess match. Let’s break it down.

The Options Crossroads: Calls, Puts, and Where Smart Money Is Parking

AVGO’s options chain is a split-level story. On the call side, the $350 strike (OI: 23,835) and $330 strike (OI: 20,723) for Friday expiration dominate, suggesting some big players are hedging for a rebound or prepping for a short-term pop. On the put side, the $310 strike (OI: 17,355) and $300 strike (OI: 15,988) show similar intensity—like a crowd betting the stock will stumble below $310.

The put/call ratio for open interest is nearly balanced at 0.94, which means no clear consensus. But here’s the twist: the $350 call OI is 38% higher than the nearest put (OI: 17,355). That’s a subtle bullish slant—like a crowd quietly buying insurance for a rebound. No block trades to note, so no whale-sized moves to chase.

News vs. Options: AI Hype or Reality Check?

Analysts are all over Broadcom’s AI story. Morgan Stanley’s $462 price target and Morningstar’s $480 fair value estimate scream "buy," backed by $11B in AI chip orders and custom silicon deals with Google and Meta. But here’s the rub: CEO Hock Tan sold $33.96M worth of shares in September. That’s not a red flag, but it’s a reminder that insiders sometimes see risks outsiders don’t.

The options market isn’t fully pricing in the AI hype yet. The $350 call OI suggests some players are betting on a rebound to $350–$370, but the RSI at 26.15 and MACD histogram at -7.98 still scream oversold. If the stock holds above Bollinger Bands’ lower line at $322.87, the AI narrative could win the day.

Trade Ideas: Calls, Puts, and Precision Entries

Let’s get tactical. For options:

• Bullish Play: Buy AVGO20251219C350 (Friday $350 call) if the stock breaks above $339.93 (30D support/resistance). Target: $350–$370.
• Bearish Hedge: Buy AVGO20251219P310 (Friday $310 put) if the stock dips below $323.65 (intraday low). Stop loss: $315.

For stock:

• Entry: Consider buying AVGO near $322.87 (lower Bollinger Band) if it holds.
• Target: $340–$345 (200D support/resistance range) as a first goal.
• Stop: Below $315 to protect against a breakdown.

Volatility on the Horizon: What to Watch Next

AVGO’s future hinges on two things: whether the AI revenue tailwinds outweigh CEO Tan’s insider selling, and if the stock can reclaim its 30D MA at $367.11. The options market is pricing in a $310–$350 battle this week, but the long-term story is about AI-driven growth. If the stock holds above $322.87, the bulls have a shot at $350+—but a close below $310 would flip the script.

Bottom line: This is a high-conviction trade for those who believe in Broadcom’s AI moat. Play it with precision, and keep an eye on those $310 puts and $350 calls—they might just tell the next chapter of AVGO’s story.