AVGO $300 Put Dominance and Bull Call Spread Setup: Navigating Broadcom’s AI-Driven Volatility on Feb 6, 2026

• AVGO surges 7% to $332.32 on $21B Google TPU orders and $8.2B AI revenue guidance
• Put/Call ratio hits 1.18 with 15,947 OI at $297.5 puts (this Friday’s top OTM strike)
• Block trades signal bearish hedging: 2,000 contracts sold at $330 calls (Mar 20 exp) and 550 puts bought at $320 (Apr 17 exp)

Here’s the deal: Broadcom’s options market is screaming caution while the stock rockets higher. The $300 put wall and massive block trades suggest smart money is hedging against a potential pullback, but the AI hype train isn’t slowing down. Let’s break down what this means for your portfolio.

The $300 Put Wall and Bearish Block Trades: A Cautionary Tale

The options chain is packed with 15,947 open interests at the $297.5 put strike (this Friday’s top OTM contract). That’s not just bearish—it’s a price floor alert. Think of it like a dam holding back a flood: if AVGO cracks $300, these puts could trigger a cascade of selling.

But here’s the twist: block traders are doubling down. The AVGO20260417P320 put (buying protection at $320) and AVGO20260320C330 call sales (selling optimism at $330) suggest big players are hedging long-term positions. They’re not bearish—they’re risk-averse. The real danger? If AI hype fades before March, these positions could force a forced unwind.

AI Hype vs. Options Reality: A Divided Market

Broadcom’s $73B AI backlog and Google’s $21B TPU orders should be a rocket ship. And yet, the options market isn’t buying it. Analysts are bullish (average $437 target), but the 1.18 put/call ratio tells a different story. Why? Two words: debt and execution risk.

Simply Wall St flags Broadcom’s high leverage as a headwind. Even with $1.5T market cap, investors are wary. The Wi-Fi 8 launch is a positive, but it’s a long game. The real test? Can Broadcom deliver on $8.2B Q1 AI revenue without burning through cash? Until then, the options market will likely stay bearish.

Actionable Trade Ideas: Play the Volatility, Not the NoiseFor Options Traders:

• Bull Call Spread: Buy AVGO20260213C340 (next Friday’s $340 call) and sell AVGO20260213C350 to cap risk. The stock’s 30D support ($332.26) and RSI at 30.26 make this a low-risk play if the AI narrative holds.
• Bear Put Play: If AVGO dips to the intraday low ($316.3), buy AVGO20260213P300 (next Friday’s $300 put) for a 10%+ move if the $300 support breaks.

For Stock Traders:

• Entry near $308.26 (200D MA) if AVGO tests the $306.97 Bollinger Band low. Target $335 (intraday high) if the $332.43 middle band holds.
• Stop-loss at $300 to avoid triggering the put wall. If it breaks, pivot to short-term puts.

Volatility on the Horizon: What to Watch

The next 72 hours will be critical. If AVGO holds above $332.26 (30D support), the $340-$350 call strikes could ignite. But a close below $300 would validate the put wall and force a reevaluation of the AI story. Either way, the $300-$340 range is where the action lives.

This isn’t a binary bet—it’s a dance between AI optimism and debt-driven caution. Play it smart: use the options as a hedge, not a gamble. The market’s already priced in half the story. Your job? Read the rest in real time.