AVGO Options Signal $310–$350 Battle: How to Play the AI Giant’s Volatility

• Broadcom (AVGO) trades at $327.67, caught between 30D support ($339.93) and 200D resistance ($343.63).
• Options data shows heavy call open interest at $350 and put open interest at $310, with a near-even put/call ratio (0.94).
• Recent news: China’s EUV lithography progress and Oracle’s financing delays weigh on sentiment, but JPMorgan upgrades and strong earnings justify optimism.

Here’s the core insight: AVGO is in a critical $310–$350 trading range, with options data and technicals pointing to a potential breakout or breakdown this week. The stock’s 0.5% intraday gain hides a fragile equilibrium—short-term bearish momentum clashes with long-term range-bound structure. Let’s break it down.

The $310–$350 Options Arms Race

AVGO’s options chain is a chessboard of bets. This Friday’s top OTM calls ($350, $330) and puts ($310, $300) show a 50-50 battle between bulls and bears. The $350 call (OI: 23,835) and $310 put (OI: 17,355) are the most contested strikes, suggesting traders expect a sharp move—either way. But here’s the twist: the put/call ratio (0.94) isn’t skewed toward one side. This balance hints at a range-bound scenario unless a catalyst (like earnings or news) breaks the stalemate.

The danger? If AVGO dips below $322.87 (lower Bollinger Band) or surges above $343.63 (200D resistance), the options-heavy strikes could trigger a cascade of profit-taking or panic selling. No block trades to watch, but the OI distribution screams: "Don’t be surprised if AVGO gaps sharply this week."

News vs. Options: A Tug-of-War

The recent 4.56% drop on Dec 17 was fueled by two fears: China’s EUV lithography progress and Oracle’s stalled data center financing. These risks are baked into the $310 put OI. But JPMorgan’s "Strong Buy" upgrade and Q4 earnings beat ($18B revenue, 28% YoY growth) justify the $350 call interest. The stock’s 120% annual gain and $1.6T market cap make it a "battleship" in Jim Cramer’s words—but battleships can still sink if the hull is breached.

Investor perception is key here. If China’s EUV prototype is seen as a distant threat (2028–2030 production), bulls regain control. But if Oracle’s financing delays ripple into broader AI demand, the $310 puts could dominate. The options data reflects this uncertainty: a coin toss between optimism and caution.

Actionable Trades: Calls, Puts, and Precision Entries

For options traders, the most attractive plays are:

• AVGO20251226C350 (next Friday’s $350 call): Buy if AVGO breaks above $339.93 (30D support). Target: $350–$370 (Bollinger Band midpoint at $375.91).
• AVGO20251219P310 (this Friday’s $310 put): Buy if AVGO falls below $322.87 (lower Bollinger Band). Target: $310–$300 (key support levels).

For stock traders, consider:

• Entry near $323.65 (intraday low) if RSI (26.15) rebounds from oversold territory. Target: $339.93 (30D support) to $343.63 (200D resistance).
• Stop-loss below $322.87 to avoid a breakdown into the $310–$300 put-heavy zone.

Volatility on the Horizon

AVGO’s future hinges on three factors: China’s EUV progress, Oracle’s financing resolution, and Q1 2026 guidance (expected $19.1B revenue). The options market is pricing in a 5–7% move by Dec 19/26, but the real story starts next week. If AVGO holds above $322.87, the $350 call could be a fireworks show. If it breaks below, the $310 put might become a lifeline. Either way, this is a stock where patience and precision pay off.

The bottom line? AVGO isn’t just a chipmaker—it’s a barometer for AI’s future. And right now, the options and technicals are whispering: "Get ready for a ride."