AVGO Options Signal $320 Support Battle: How to Play the $380 Bull Case

• AVGO plunges 5.3% to $323.10, testing the Bollinger Bands lower bound at $326.13
• Put/Call ratio (0.96) favors calls, with heavy OI in $330C and $310P strikes
• Analysts project 33.6% upside to $455.92, but margins face AI-driven pressure

The stock is dancing on a tightrope right now. Short-term technicals scream caution—RSI at 35.16, MACD bearish crossover—but long-term bulls are betting on a rebound. The key question: will the $320 support level hold, or does this become a gateway to deeper pain? Let’s break it down.The Options Market’s Secret Signals

Options traders are hedging both ways, but with a subtle bullish tilt. This Friday’s $330 call (OI: 19,350) and $310 put (OI: 13,734) strikes show heavy positioning. Think of it like a football game: the calls are the offense (targeting a rally to $380), while the puts are the defense (guarding against a drop to $300).

The put/call ratio (0.96) isn’t screaming “buy the dip,” but it’s not warning of a crash either. No block trades to distort the picture—this is retail and institutional money quietly lining up for Friday’s expiry. The next-week $380 call (OI: 5,758) hints at a longer-term bet on AI-driven recovery.

News That Could Shift the Script

Broadcom’s AI chip growth is a double-edged sword. Yes, Q4 revenue hit $18B, and JPMorgan’s Harlan Sur calls it a “must-have” for portfolios. But management’s admission of margin compression from custom AI processors adds friction. Analysts are split: some see a temporary setback, others a structural shift.

Jim Cramer’s “battleship” analogy fits here. The stock’s fundamentals are sturdy, but its valuation (P/E >45x) makes it vulnerable to profit-taking. If the $320 support holds, this dip could be a buying opportunity. If it breaks, watch the 200D MA at $338.30 turn into a speed bump.

Your Playbook for TodayFor Options Traders:

• Bull Case: Buy AVGO20251219C330 calls if the stock closes above $326.13 by EOD. Target $340–$350 for 20–30% gains in 2 days.
• Bear Case: Sell AVGO20251219P310 puts if the stock dips below $320. Collect premium while capping downside risk.
• Advanced Play: A bear call spread (AVGO20251219C330 + AVGO20251219C350) limits risk if the rally stalls.

For Stock Traders:

• Entry: Consider buying AVGO near $320 if support holds. Set a stop-loss at $315 to protect against a breakdown.
• Targets: First resistance at $340 (30D support-turned-liquidity zone), then $370 (next-week call OI cluster).

Volatility on the Horizon

This week’s action will set the tone for AVGO’s next chapter. A close above $340 would reignite the long-term bull case, while a breakdown below $320 could trigger a test of the $300 psychological level. Either way, the options market is pricing in a volatile finish—so buckle up. The AI train isn’t stopping, but the tracks are getting bumpy.