AVGO Options Signal $350 Call Contention as Broadcom Nears Key Support Amid AI Expansion

• AVGO trades at $341.25, hovering just below its 30D MA ($365.64) but above critical 200D support ($283.62).
• Options OI shows 10,095 calls at $350 (this Friday’s expiry) vs. 11,156 puts at $330, hinting at a tug-of-war between bullish breakout hopes and bearish downside protection.
• Q4 earnings beat and AI chip launch have boosted AVGO 8% in a week, but a 5% workforce cut and EU antitrust probe add near-term uncertainty.

The options market is locked in a tight battle: bullish call buyers eye a $350 breakout while bears hedge with $330 puts. With AVGO testing its 30D support range ($339.93–$341.67), the coming days could decide whether this is a short-term bounce or a deeper correction. Let’s break it down.

Bullish Call Contention vs. Bearish Put Protection

AVGO’s options chain tells a story of divided conviction. This Friday’s $350 call (AVGO20251226C350) has 10,095 open contracts—the highest among OTM calls—suggesting institutional players are betting on a post-earnings pop. Meanwhile, the $330 put (AVGO20251226P330) leads puts with 11,156 OI, reflecting hedging activity as the stock nears its 200D support.

The near-1:1 put/call ratio (0.998) for open interest shows no clear bias, but the concentration of calls above $350 and puts below $330 creates a "straddle-like" setup. If AVGO breaks above $346.24 (intraday high), call buyers could push it toward $350. A drop below $337.22 (intraday low) would validate the puts’ bearish case.

News Flow: AI Momentum vs. Integration Headwinds

Broadcom’s recent $61B VMware acquisition and new AI chip launch are tailwinds, but the EU antitrust probe and 5% workforce cut add friction. The $2.5B DoD contract and $5B buyback are bullish catalysts, yet the CTO’s exit and mixed analyst reactions to Q4 earnings introduce volatility.

Investor sentiment is split: bulls see AI-driven revenue growth from the Thor chip and SecureX platform, while bears worry about integration costs and regulatory delays. The key question is whether the stock can hold its 30D support range ($339.93–$341.67) long enough for positive news to dominate.

Actionable Trade Ideas for AVGO

• Options Play: Buy AVGO20251226C350 calls if the stock closes above $341.67 today. Target $350–$360 if the 30D MA ($365.64) holds. For downside protection, buy AVGO20251226P330 puts if the stock dips below $339.93.
• Stock Play: Consider entries near $339.93 (support) with a stop below $337.22. If bullish, target $346.24 (intraday high) or $350 (call strike). For next Friday’s expiry, AVGO20260102C360 could offer longer-term exposure if the stock stabilizes.

Volatility on the Horizon

With AVGO sitting at a crossroads—technical support, options expiry, and mixed news—the next 72 hours will test its resolve. A break above $346.24 could reignite the AI-driven rally, while a drop below $337.22 might trigger a test of the 200D MA ($283.62). Either way, the options market has priced in a high-stakes game of chicken. Stay nimble, set tight stops, and watch those $350 calls like a hawk.

• Key Levels to Watch:
• Support: $339.93 (30D range), $337.22 (intraday low)
• Resistance: $346.24 (intraday high), $350 (call strike)
• Breakout Target: $365.64 (30D MA)
• Breakdown Target: $283.62 (200D MA)