AVGO at a Crossroads: Calls at $350, Puts at $265, and the $970M DISA Contract Show Why Now is Key

• Broadcom (AVGO) trades at $319.13 as of 3/24/26, down 1.05% from its previous close of $322.51.
• Options activity shows heavy put interest at $265 and call interest at $350 ahead of the 2026-03-27 expiration.
• A major $970M contract with DISA and AI-driven revenue growth are driving bullish sentiment—but supply bottlenecks and bearish options flows create tension.

The market is clearly at a tipping point for AVGO today. On one side, a surge in bearish puts and the recent AI supply wall warnings have pushed the stock lower. But on the other, major news like the DISA partnership and strong earnings are keeping the bulls in the room. Given the options positioning and current price action, I think this is a pivotal day—AVGO either bounces back above key resistance or slides into a deeper correction. Let’s break it down.

Calls at $350 and Puts at $265: A Battle for Control

AVGO’s options market is polarized. This Friday (2026-03-27), the top OTM calls are at $350 (OI: 7087), $345 (OI: 7062), and $340 (OI: 4129). The top OTM puts are at $265 (OI: 16,965), $270 (OI: 14,138), and $307.5 (OI: 11,396). The put/call ratio for open interest is 1.20, meaning bears have the edge right now.

The heavy put interest at $265 is a red flag—someone is either hedging or betting on a meaningful drop. But the call interest at $350 isn’t to be ignored either. This is the level where a lot of money is being deployed to play for a breakout. Think of it like a tug-of-war: the puts are betting on a correction, the calls on a rebound. If the stock trades above $325 and holds that line, the call side could win. If it breaks below $315, the puts take over.

One notable block trade caught my eye: AVGO20260515P300 with a volume of 900 and a turnover of $1,195,200. It’s a put, and it’s for a strike at $300 expiring in May. That’s a deep out-of-the-money put, but the size of the trade tells me someone is seriously hedging or positioning for a big drop over the next two months. Either way, it’s a signal to stay alert.

News Flow: AI Growth, Supply Constraints, and $970M in New Contracts

Broadcom has been firing on all cylinders when it comes to news. Just last week, it inked a $970 million blanket purchase agreement with DISA via Carahsoft, which is huge for the government cloud and security business. The contract is for five years and includes VMware Cloud Foundation, security tools, and more. This is exactly the kind of multi-year, multi-hundred million dollar deal that keeps Wall Street’s eyes on AVGO.

On the flip side, Broadcom also warned about supply bottlenecks—particularly at TSMC and in laser and PCB production. That’s a big red flag for anyone who’s been riding the AI hype train. It’s like ordering a car from Tesla while the battery plants are on strike. You can see why the puts are piling in.

The news is a double-edged sword. The DISA contract supports a bullish narrative, but the supply issues inject uncertainty. That’s why the market is so torn: the fundamentals are strong, but execution risks are real.

Trade Setups: Calls at $350 and Puts at $265, with Clear Levels to Watch

For bulls, the AVGO20260327C350 call is a high-conviction play if you believe in a near-term rebound. The RSI is at 54, not yet oversold, and a move back above $325 could trigger a rally toward $340. If the stock closes above $330 by Friday, this call could see strong gains.

For bears, the AVGO20260327P265 put is a heavy-weight bet. It’s the most traded put and reflects deep bearish sentiment. If the stock breaks below $315 and moves closer to $300, this could be a solid position to lock in profits or hedge long exposure.

Stock traders looking for a directional bet could consider entry near $315–$318 if support holds. A bounce off this level could aim for a move back to $330 and beyond. If it breaks through $315, a short-term drop toward $305 may be in play. Keep an eye on the Bollinger Band at $305.92—a close below that would confirm a bearish shift.Volatility on the Horizon: A Make-or-Break Week for AVGO

The coming days are critical. AVGO is at the crossroads of a strong AI growth story and near-term supply constraints. The options market is split, and the news flow is pulling both ways. But one thing is clear: the $350 call and $265 put are the most watched strikes for now. If the stock breaks above $325 with volume, it could signal a shift back to bulls. If it breaks below $315 and tests $305, it may be time to take cover.

This isn’t a coin toss—it’s a chess match. And the next few days will tell us who’s in control. Stay close to the action.