Broadcom (AVGO) Options Signal Bullish Breakout Potential: Target $360–$370 Calls as AI Catalysts Ignite

• Broadcom’s stock surges 2.5% to $353.76, breaking above 30D support/resistance at $348.62.
• Options market shows heavy call open interest at $360–$370 strikes and put OI at $310–$320, hinting at a volatile price swing.
• Block trades in March 2026 $370 calls and AI partnerships with OpenAI/Anthropic fuel long-term optimism.

Here’s the takeaway: Broadcom shows upside potential today. The stock’s rally into the upper Bollinger Band ($378.99) and heavy call buying at $360–$370 strikes suggest a short-term breakout is brewing. But don’t ignore the put-heavy positioning at $310–$320—this isn’t a one-way bet. Let’s break it down.

"Battle of the Bulls and Bears": OTM Options and Block Trade Signals

The options market is split. For this Friday’s expiration, call open interest peaks at $360 (14,881 contracts) and $370 (13,164), while puts dominate at $310 (18,164) and $320 (11,670). This means traders are hedging both directions: some expect a rally to $360+ (AI-driven optimism), others fear a pullback to $310–$320 (technical support levels).

The block trades add intrigue. A $2.186M buy in March 2026 $370 calls and a $1.786M block in $340 calls signal institutional confidence in AVGO’s long-term AI narrative. These strikes align with the 30D moving average ($362.61) and the upper Bollinger Band, making them key watchpoints.

"AI-Driven Optimism": News That Could Fuel the Rally

Broadcom’s recent news is a goldmine for bulls. The Wi-Fi 8 launch and Tomahawk 6-Davisson switch position it as a leader in AI infrastructure. The OpenAI/Anthropic partnerships and $6.75B debt raise further validate its growth story. Analysts from Bernstein to Motley Fool are piling in, with Goldman Sachs setting a $450 price target.

But here’s the catch: while the fundamentals scream bullish, the stock is currently trading below its 200D MA ($293.64) in a long-term range. This means volatility could spike if the AI hype clashes with short-term technical hurdles.

"Trade the Imbalance": Actionable Strategies for Today

For options traders, the most compelling plays are:

• Buy AVGO20260116C360 (strike $360, expiring this Friday): With 14,881 contracts in open interest, this strike aligns with the 30D MA and recent intraday high ($353.90). A close above $360 could trigger a cascade of call buyers.
• Buy AVGO20260116P320 (strike $320, expiring this Friday): If the stock dips below $340.95 (today’s low), this put offers downside protection. The 200D support ($338.30–$343.63) could act as a buffer.

For stock traders, consider:

• Entry near $348.62–$350.37 (30D support/resistance): A bounce here could target $362.61 (30D MA) or even $378.99 (Bollinger Band upper).
• Stop-loss below $338.30 (200D support): A break here would validate the long-term ranging pattern and trigger bearish momentum.

Volatility on the Horizon: What to Watch

The next 48 hours will be critical. If Broadcom holds above $348.62, the $360–$370 call strikes could ignite a rally toward $378.99. But a breakdown below $338.30 would shift focus to the $310–$320 put-heavy zone. Either way, the block trades in March 2026 options suggest this isn’t just a short-term pop—it’s a setup for a larger move.

Bottom line: AVGO is at a crossroads. The AI narrative and options flow favor bulls, but technicals warn of a potential pullback. Play it smart—use the $360 calls for upside and the $320 puts as insurance. The market’s about to decide: is this a breakout… or a trap?