AVGO Options Signal $300 Put Defense and $350 Call Battle: Here’s How to Position for Volatility

• AVGO trades at $334.18, down 2.5% from its $344.50 open, with support near $332.26 and resistance at $341.99
• Put/call open interest ratio of 1.20 shows bearish bias, with 22,297 puts at $300 (this Friday’s top OI) vs 5,480 calls at $350
• Block trade of 1,000 AVGO20260227C375 contracts ($375 strike, Feb 27 expiry) hints at institutional bullishness

The stock is caught in a tug-of-war between short-term bulls and long-term bears, with options data pointing to a critical $30–$40 price swing potential this week.The $300 Put Wall and $350 Call Corridor: A Battle for AVGO’s Soul

Options market makers are hedging for a sharp move. This Friday’s $300 put (OI: 22,297) and $350 call (OI: 5,480) strikes form a bearish-bullish seesaw. The 1.20 put/call ratio suggests bears dominate, but the block trade of AVGO20260227C375 (1,000 contracts at $375) adds a wildcard—someone big is betting on a post-earnings pop.

Here’s the tension:

• Bullish risk: If AVGO breaks above $346.43 (200D resistance), the $350 call wall could trigger a cascade of covering buys
• Bearish risk: A drop below $332.26 (30D support) might trigger $300 put sellers to short the stock, deepening the slide

No Recent News, But Options Tell a Story

There’s no material news in the 3-day window, but the options data implies a narrative. Heavy put buying at $300 suggests institutional players are bracing for a 7.5% drop from current levels. Conversely, the AVGO20260227C375 block trade implies a big player is positioning for a post-Friday rebound. Without fundamental catalysts, this looks like a liquidity trap—traders betting against each other’s moves.

Actionable Trades: Calls for Breakouts, Puts for the Drop

For options traders, focus on two setups:

• Bullish: Buy AVGO20260213C350 (this Friday’s $350 call) if AVGO closes above $346.43. Target: $360 strike if the block trade triggers a short-covering rally
• Bearish: Buy AVGO20260220P312.5 (next Friday’s $312.5 put) if AVGO dips below $332.26. Target: $300 level if the put sellers start dumping shares

For stock traders, consider:

• Long entry: $332.26 (support zone) with a stop below $330.15 (lower Bollinger Band). Target: $346.43 (200D resistance)
• Short entry: $346.43 (resistance) with a stop above $348.38 (upper Bollinger Band). Target: $332.26 (support)

Volatility on the Horizon: Positioning for the Week’s End

AVGO’s price is teetering on a knife’s edge. The $300 put wall and $375 block trade suggest a 30-point range is in play. If you’re long-term bullish on Broadcom’s AI infrastructure bets, this is a chance to buy dips near $330. But if the puts win, this could be a 10% correction event. Either way, the options market is pricing in a 20% move by Feb 27—don’t get caught flat-footed.