AVGO Options Signal Bullish Bias: Key Strikes and Block Trades Point to $360+ Breakout Potential

• AVGO surges 2% to $351.84, trading near 30-day resistance (350.366) and 30D MA (362.61)
• Put/Call OI ratio at 1.09, but heavy call OI at $360–$400 strikes hints at bullish positioning
• Block trades show 500+ calls bought at $350 strike (Jan 16 expiry), signaling near-term conviction

Broadcom’s options market is whispering a story of cautious optimism. While technicals show a short-term bearish bias, the options data and recent news suggest a potential breakout above $360 could be in the cards. Let’s break down why this stock might be setting up for a bullish move—and where the risks lie.

Bullish OI Clusters and Whale Moves: A Battle for $360

Looking at open interest, calls dominate at strikes above $360, with the $360 strike (14,881 OI) and $400 strike (15,112 OI) standing out. This suggests traders are pricing in a meaningful move higher, especially with the stock hovering near its 30-day resistance. Meanwhile, puts pile up at $300–$310, but those strikes are far below current levels. The put/call ratio (1.09) isn’t extreme, but the skew toward higher-strike calls implies a bias for upside.

Don’t ignore the block trades either. A 500-lot of AVGO20260116C350 calls was bought outright this week, and another 750-lot of AVGO20260116C360 traded at a discount. These moves hint at institutional players hedging or positioning for a short-term pop before Friday’s expiry. If the stock breaks above $350.366 (current 30D support/resistance), those block buyers could push it toward the $360–$370 range.

CES 2026 Launches and Institutional Moves: Fuel for the Fire

Broadcom’s new Wi-Fi 8 products—like the BCM4918 APU—aren’t just tech jargon. They’re real catalysts. Analysts at Goldman Sachs and Jefferies have upgraded AVGO to “Buy,” and the stock’s Q4 beat (revenue up to $18.02B) shows its core business remains strong. Yet the Louisiana State Retirement System trimming a 0.4% stake (now 477,400 shares) adds a wrinkle. But here’s the catch: institutional ownership is still heavy, and the $438 average price target from analysts suggests long-term conviction. The news flow leans bullish, but the stake reduction reminds us not to ignore short-term profit-taking risks.

Actionable Trades: Calls, Breakouts, and Strategic Stops

For options traders, the AVGO20260116C360 call (expiring Friday) is a high-conviction play. If the stock breaks above $350.366, this strike could see a pop, especially with heavy OI already in place. For a longer-term angle, the AVGO20260123C355 call (next Friday expiry) offers leverage if the breakout holds. Both options are trading at reasonable premiums given the stock’s volatility.

Stock traders should watch two levels: Entry near $348.627 (30D support) if the pullback holds, with a target at $362.61 (30D MA). A break above $350.366 would validate the bullish case, while a drop below $343.63 (200D support) would signal caution. Use tight stops just below intraday lows ($340.95) to protect against a surprise selloff.

Volatility on the Horizon: Balancing Bullish Momentum and Near-Term Risks

The next 48 hours will be critical. If AVGO holds its 30D support and the $350 call block buyers push the price higher, this could be the start of a multi-week rally. But don’t ignore the puts at $300–$310—those are there for a reason. A breakdown below $343.63 would force reevaluation. For now, the data points to a stock on the cusp of a breakout, with options positioning and product launches aligning for a bullish outcome. Stay nimble, set clear stops, and let the market tell you when to lean in.