AVGO Options Signal Bullish Bias: Key Strikes at $355P and $360C as AI-Driven Growth Fuels 2026 Optimism

• Broadcom (AVGO) trades at $351.51, up 0.37% with volume surging to 6.4M shares.
• Options data shows heavy call open interest at $360–$400 and put OI at $310–$330, with a near-even put/call ratio of 0.99.
• Analysts raised price targets to $500–$475, citing AI infrastructure dominance and VMware’s software growth.

Here’s the core insight: AVGO’s options market is quietly bullish, with heavy positioning at key strikes aligning with its AI-driven momentum. While the stock hovers near its 30D support ($341.67), technicals and sentiment suggest a breakout above $360 could reignite the long-term uptrend. Let’s break down why this matters for traders today.

Bullish Sentiment in Options: Calls at $360, Puts at $330 Signal Balanced Risk

The options chain tells a story of cautious optimism. For this Friday’s expiration, AVGO20251226C360 (OI: 10,696) and AVGO20251226P330 (OI: 12,132) dominate open interest. These strikes act as psychological thresholds: calls at $360 reflect expectations of a rebound from oversold RSI (39.45), while puts at $330 hint at hedging against a pullback. The near-even put/call ratio (0.99) suggests no extreme fear or euphoria—just measured positioning.

But here’s the catch: Bollinger Bands show AVGO is trading near the middle band, with the upper band at $429.65 still out of reach. A break above $355 (current intraday high) could trigger a rally toward the 30D MA at $365.01, but failure to hold above $347.76 (intraday low) risks testing the 200D support at $338.30.

News Flow: AI Infrastructure and Dividend Hikes Fuel Institutional Confidence

Broadcom’s Q4 results—$18.02B revenue, $1.95 EPS—back up the options narrative. Analysts like Cantor Fitzgerald and KeyCorp are bullish on its AI networking role (Tomahawk 6 chips, custom ASICs for OpenAI/Anthropic) and VMware’s 40% recurring revenue. The raised dividend ($0.65/share) and 68% EBITDA margin also attract income-focused investors.

Yet, risks linger. Apple’s in-house chip shift and China export controls could pressure margins. But given Broadcom’s diversified revenue streams and $26.9B free cash flow, these seem manageable. Institutional ownership at 76.43% underscores confidence—Yousif Capital trimmed its stake, but Brighton Jones and Revolve Wealth added shares.

Actionable Trade Ideas: Calls at $360, Puts at $330, and Stock Entry Near $341.67

For options traders:

• AVGO20260102C360 (next Friday’s $360 call, OI: 8,587) offers leverage if the stock breaks above $355. Target: $365–$370.
• AVGO20251226P330 (this Friday’s $330 put, OI: 12,132) acts as insurance against a drop below $347.76.

For stock buyers:

• Entry near $341.67 (30D support) with a stop-loss below $338.30 (200D support).
• Target zone: $365.01 (30D MA) and $370 (key resistance).

Volatility on the Horizon: Positioning for AVGO’s AI-Driven Ascent

Broadcom’s story isn’t just about semiconductors—it’s about owning the infrastructure of AI’s next wave. With analysts raising targets to $500 and the stock trading at a 73.57 P/E, patience is key. The options data and technicals suggest a high-probability setup for a rally into early 2026, but traders should stay nimble. Watch the $355 level closely: a break above it could signal the start of a new bullish phase.