AVGO Options Signal $350 Bullish Battle: How to Play the AI Chip Catalyst

• AVGO trades at $348.36, up 0.98% from $344.97, with intraday swings between $340.95 and $352.33.
• Options data shows a 1.09 put/call OI ratio, with heavy call interest at $350 and put OI surging at $310.
• Block trades in March 2026 $370 calls hint at big money positioning for a potential AI-driven rally.

Here’s the takeaway: Broadcom is caught in a tug-of-war between short-term bearish momentum and long-term AI optimism. The options market is pricing in a critical $350 psychological level as a battleground—if it holds, the stock could break out toward $379 (Bollinger upper band). If it cracks, $310 puts could see explosive action. Let’s break down why this matters for your strategy.

The $350 Call Wall and $310 Put Floor: What Options Whisper About Sentiment

The options chain tells a story of cautious optimism. For this Friday’s expiration, AVGO20260116C350 calls have 20,078 open contracts—the highest of any strike. That’s a magnet for traders expecting a push above $350. Meanwhile, AVGO20260116P310 puts sit at 18,164 OI, signaling a fear of a 14% drop to $310. The imbalance? A 1.09 put/call ratio suggests more bearish positioning, but the $350 strike is the emotional sweet spot for bulls.

Don’t ignore the block trades either. AVGO20260320C370 and AVGO20260320C340 saw massive trades totaling $3.97 million. These March 2026 calls imply big players are hedging or speculating on a post-earnings pop—a sign they expect AVGO to test $370+ by mid-March.

News That Could Tilt the Scales: AI Hype vs. DCF Reality Check

Broadcom’s AI chip deals with OpenAI and Apple are fueling the bullish narrative. Analysts project $90B in AI ASIC revenue by 2027, which could justify a $3T market cap. But here’s the catch: a DCF analysis pegs intrinsic value at $207.48, way below the current $348.36. That’s a 66% margin of safety gap—meaning fundamentals alone can’t justify this price. However, if AI adoption accelerates, sentiment could override valuation logic.

The insider selling (CEO and execs offloading shares) adds friction. Cerity Partners also trimmed its stake by 0.2% in Q3. These moves suggest some players are hedging against near-term margin pressures. But if the AI narrative gains traction, retail and institutional buyers could push the stock higher regardless.

Actionable Trades: Calls for Breakouts, Puts for ProtectionFor options traders: Buy AVGO20260116C350 calls if AVGO closes above $350 today. The $350 strike is a key level—break it, and the RSI (currently at 62.78) could surge into overbought territory. For a longer play, AVGO20260123C350 offers more time to digest a potential AI-driven rally.For bears: Buy AVGO20260116P310 puts if the stock dips below $340.95 (today’s low). The 200D support at $338.30 is a critical floor—a break below that would validate the puts.Stock traders: Consider entries near $348.63 (30D support) with a target at $379 (Bollinger upper band). If it cracks $340, exit longs and consider shorting toward $310.Volatility on the Horizon: Balancing AI Hype and Valuation Gaps

The next two weeks will test AVGO’s resolve. A breakout above $350 could trigger a parabolic move toward $379, driven by AI optimism. But a drop below $340 would reignite DCF concerns and force reevaluation of the $3T cap dream. Your edge? Position yourself at $350 calls or $310 puts—where the market’s emotional and technical lines collide. Stay nimble—this stock isn’t done swinging yet.