AVGO Bears Dominate Near $315, but Bullish Eyes Target $340—How to Position for a Volatile Finish

• Stock: Broadcom (AVGO)
• Current Price: $301.37
• Intraday Move: -2.6%
• Options Open Interest Put/Call ratio: 1.18

AVGO is in the spotlight today, and the options market is sending clear signals. A bearish twist has settled in for now, but the long-term trend is still in a range, and some sharp traders are already positioning for a rebound. The question is—how do you take advantage of this setup without getting caught in the crossfire of a potential pullback?

Bull vs Bear Battlegrounds: Where the Money Is Telling the Story

Options open interest is skewed to the downside, but it’s not a one-sided story. The top OTM put options have heavy open interest at $265, $287.5, and $295, while the top OTM calls have significant OI at $335, $337.5, and $350. This suggests two camps: one preparing for a sharp decline and another quietly laying odds on a rebound.

The bearish side is especially active. The $265 put has an OI of 10,494 contracts for this Friday alone, and the next Friday’s $265 put sees an even stronger buildup at 13,310 contracts. That’s a major bear flag. But here’s the twist: the call side isn’t dead. The $335 call for this Friday has 13,120 contracts in OI—just shy of the top put. This hints at a market that’s torn—some expect a bounce off the lower Bollinger band ($302.95), while others see a deeper drop.

Block trading data adds more intrigue. A 250-contract block trade in the put AVGO20260918P300 and a larger 824-contract sale in AVGO20260402P307.5 (expiring next week) suggest institutional players are either hedging or actively betting on a drop. The $307.5 put being sold could also mean a firm belief that $307.5 is a key short-term resistance level—worth watching.

News Neutral—Options Lead the Way

There’s little recent news to sway sentiment. No major announcements have emerged in the past 4 days. That means the current options-driven narrative isn’t reacting to a sudden earnings miss or a product launch. The market is essentially trading off its own momentum and positioning. This could be a window of opportunity for traders who can read the options flow and act before the next catalyst.

Trading Setup: How to Play the Short-Term Downtrend and Long-Term Range

If you’re an options trader, consider the following:

• AVGO20260403P287.5 for next Friday: 10,641 contracts of OI. This is a bearish play with a clear floor at $287.5, giving you a defined risk and reward ratio.
• AVGO20260403C340 for next Friday: 5,097 OI. If the stock breaks above the middle Bollinger at $324.13, this call could be a strong play as the upper band is at $345.31.

For stock traders, the key levels are:

• Entry near $302.95 if support holds at the lower Bollinger. Target $315 as a potential short-term rebound level.
• Stop-loss below $300.47—the intraday low. If it breaks, consider moving to the next level at $295.

Volatility on the Horizon

We’re sitting at a crossroads. The RSI at 38 suggests we’re in oversold territory, and the MACD is negative but closing in on its signal line. If the stock breaks above $315, it could re-energize the bulls and test the 30-day range at $318.14. A break below $300.47 could accelerate the move toward $287.5 or even $265—where the puts are waiting.

The message is clear: AVGO isn’t done moving. Whether it’s a short-term bounce or a deeper correction, the options market is already betting on both. Your job is to pick the right side—and do it with a plan.