AVGO’s $350 Call OI Surge and $330 Put Pressure: A Bullish Breakout Play as AI Backlog Fuels 2026 Momentum

• Broadcom just raised its dividend 10%, now yielding 0.76%, while AI semiconductor sales surged 74% in Q4 FY2025.
• Options data shows heavy call open interest at $350 and $360, with puts clustering at $330 and $310 ahead of Friday’s expiry.
• Truist upgraded AVGO’s price target to $510, citing $73B in AI backlog and VMware integration gains.

Here’s the takeaway: AVGO’s options activity and fundamentals are lining up for a bullish breakout. The stock is trading in a tight range but with a short-term bearish bias, yet call buying at key strikes suggests smart money is positioning for a push above $350. Let’s break down why this could be a setup for 2026.

The $350 Call OI Surge and $330 Put Pressure: A Battle for Direction

Looking at this Friday’s options chain, the top OTM calls are clustered at $350 (OI: 10,095) and $360 (OI: 9,582), while puts peak at $330 (OI: 11,156) and $310 (OI: 9,894). This isn’t just noise—it’s a signal. Call buyers at $350 are betting on a rebound from the 30D support zone ($339.93–$341.67), while put buyers at $330 are hedging against a drop below the 200D MA ($338.30). The near-even put/call ratio (0.998) suggests no overwhelming bearishness, but the heavy call OI at $350 hints at a potential short-term inflection point.

Why This Matters: If AVGO closes above $346.24 (today’s high), the $350 calls could act as a catalyst. Conversely, a break below $337.22 (today’s low) might trigger a rush to the $330 puts. The lack of block trades means no hidden whale moves to worry about—this is pure retail and institutional options positioning.AI Backlog and Global Revenue: Why the Bull Case Stands

Broadcom’s $73B AI semiconductor backlog isn’t just a number—it’s a tailwind. The company’s AI networking and ASICs now drive 57% of semiconductor revenue, with Google, Meta, and Anthropic as key partners. International markets (60% of Q4 revenue) are also a strength, with Asia Pacific expected to contribute nearly half of 2026 revenue. This diversification softens regional risks and fuels consistent cash flow ($26.9B in FY2025 FCF).

The Catch: The RSI at 34 and MACD below zero indicate oversold conditions, but the stock is still in a short-term downtrend. The dividend hike is great for income investors, but growth bulls need the stock to break out of its $337–$346 range to validate the AI narrative.Actionable Trade Ideas: Calls, Puts, and Precision Entries

1. Bullish Play: Buy AVGO20260102C350 (next Friday’s $350 call). With the stock hovering near $343, this strike offers leverage if AVGO closes above $350. The OI suggests liquidity, and a push above $346.24 could trigger a cascade of call buyers.
2. Bearish Hedge: Buy AVGO20251226P330 (this Friday’s $330 put). If AVGO dips below $337.22, this put offers downside protection with a strike just below key support.
3. Stock Entry: Consider buying AVGO near $339 if it holds above $337.22. Target $360 if the $350 call OI acts as a self-fulfilling prophecy. Stop-loss below $335 would limit risk.

Volatility on the Horizon: A 2026 Setup

Broadcom’s options and fundamentals are painting a clear picture: the AI infrastructure boom is here, and AVGO is positioned to capitalize. While the short-term technicals are mixed, the long-term range-bound trend and $73B backlog suggest a breakout is inevitable. The key is timing—watch the $350 call OI and $330 put pressure as barometers. If the stock cracks $346.24, the bulls take control; if it falls below $337.22, the bears get their say. Either way, this is a stock with momentum on both sides of the trade.