AVGO Options Signal $350 Pivotal Level: Bull Call Spread vs. Bear Put Play as AI Hype Meets Earnings Reality

• AVGO surges 1.47% to $350.03, trading near 30D support/resistance cluster (348.63–350.37)
• Put/Call OI ratio at 1.09 shows slight bearish bias, with $310–$320 puts dominating
• Block trades on $350C and $340C (expiring 1/16) hint at near-term bullish positioning
• Q4 earnings beat + AI Wi-Fi 8 launch fuel optimism, but insider selling adds caution

The stock is dancing on a tightrope: technicals show a short-term bearish bias, but options data and AI-driven news suggest a breakout could be brewing. Let’s break down why $350 is the make-or-break level today.Bullish Bears and Bearish Bulls: Decoding the Options Imbalance

The options market is split at the seams. Put open interest peaks at $310 (18,164 contracts) and $320 (11,670) for this Friday’s expiry, while call OI clusters at $360 (14,881) and $370 (13,164). This creates a curious tension: retail traders are hedging for a sharp drop, but institutional players are betting on a rebound above $350.

The block trades add intrigue. A $350C350 (AVGO20260116C350) purchase for $345,000 and a $340C340 (AVGO20260320C340) trade worth $1.786M suggest big players are locking in upside potential. These strikes align with the Bollinger Band middle band (346.89) and 200D MA (293.64), hinting at a possible squeeze play if the stock breaks above $352.33 (intraday high).

AI Hype vs. Earnings Realism: What the News Actually Means

Broadcom’s Q4 beat and $0.65 dividend hike are positives, but management’s margin warnings and insider selling (70k shares by CEO Hock Tan) create friction. The $450 price targets from Goldman and Bernstein feel optimistic against a $346.89 200D MA that’s still 4% below current price. Yet the $18.58B Norges Bank stake and $6.75B debt raise signal long-term conviction.

Here’s the twist: ARK’s entry and Goldman’s AI infrastructure thesis could push the stock higher if the BCM4918 chip gains traction. But if gross margins dip below 75%, the $314.80 lower Bollinger Band becomes a hard stop.

Trade Ideas: Bull Call Spread or Bear Put Hedge?

For options traders, the $350C350 (AVGO20260123C350) and $370C370 (AVGO20260123C370) strikes offer a high-probability play. Buy the $350C350 for $15.39 and sell the $370C370 for $5.45 to create a bull call spread with a $20 max profit if AVGO closes above $370 by 1/23. This caps risk at $9.94 per contract while leveraging the 30D MA support.

Stock traders should watch $352.33 (intraday high). A break above this with volume could target $360–$370, aligning with the 30D MA (362.61). If it falters, $340.95 (today’s open) is a critical support. A drop below that would validate the $310–$320 put-heavy OI, making the $320P320 (AVGO20260123P320) a bearish play.Volatility on the Horizon: Balancing AI Optimism and Margin Realities

The next 48 hours will test AVGO’s resolve. A $350 close would validate the $18.02B Q4 revenue optimism, while a $338.30 drop (200D support) would trigger panic. The $346.89 middle band is the psychological line—hold it, and the AI narrative wins. Break it, and the bears take control.

Final Take: This is a stock caught between institutional bullishness and retail bearish hedging. The $350 level isn’t just a number—it’s a battleground. Play it smart: use options to cap risk on the long side, or short-term puts to hedge a potential selloff. Either way, the next few days will tell the story.