AVGO Options Signal $320 Put Dominance: Short-Term Bear Play Amid AI Growth Hopes

• AVGO trades at $319.59, down 1.8% from $325.49, with RSI at 38.8 and MACD negative.
• Put/call open interest ratio at 1.14, with $320 puts (OI: 10,729) as Friday’s top put.
• Analysts target $450+ for AVGO, but stock lags below 20/50-day SMAs.
• Block trades show heavy put activity (e.g., AVGO20260717P320) hinting at long-term hedging.

The stock is caught between bearish near-term pressure and bullish AI-driven fundamentals. Here’s how to navigate it.The $320 Put Wall and Institutional Hedging

Options market sentiment is skewed bearish. This Friday’s $320 puts (OI: 10,729) dominate the put chain, while next Friday’s $297.5 puts (OI: 48,297) suggest deeper downside concerns. The call side is quieter, with $340 and $360 calls (OI: 5,145 and 6,315) as the top bets for a rebound.

But here’s the twist: block trades like AVGO20260717P320 ($320 puts expiring July 2026) show big players hedging against a potential drop. These puts could act as a magnet if volatility spikes. Meanwhile, the $340–$360 call OI suggests some conviction in a rebound, but the volume is half that of the put side.

Bullish News vs Bearish Price Action

Analysts are all-in on AVGO’s AI-driven growth. TD Cowen and KeyBanc cite surging demand for chips in data centers and custom silicon. Institutional buyers like Vanguard and Maryland State Pension increased stakes, and the stock’s $1.56T market cap reflects high expectations.

Yet the price tells a different story. AVGO is trading 10% below its 50-day SMA and faces resistance at $344.05 (middle Bollinger Band). The RSI at 38.8 hints at oversold territory, but the MACD histogram (-1.22) and declining volume (21.5M) suggest sellers still control the short-term narrative.

Actionable Trade Ideas for AVGOFor Options Traders:

• Bearish Play: Sell the $320 puts expiring Jan 30 (AVGO20260130P320) if AVGO holds above $314.11 (intraday low). Target a 30–40% premium decay if the stock stabilizes.
• Bullish Play: Buy the $340 calls expiring Jan 30 (AVGO20260130C340) if AVGO breaks above $321.99 (intraday high). Use the 200D SMA ($300.64) as a stop-loss.

For Stock Traders:

• Long Entry: Consider buying AVGO near $327.45 (lower Bollinger Band) if it holds. Target $340–$345 (30D support/resistance zone) with a stop at $310.
• Short-Term Exit: If AVGO dips below $310, consider selling into strength at $300–$305 (lower Bollinger Band).

Volatility on the Horizon

AVGO’s story is a tug-of-war between AI optimism and near-term profit-taking. The options market is pricing in a 10–15% downside risk over the next month, but the fundamentals remain intact. Traders should balance short-term hedges (like the $320 puts) with long-term bullish positions if the stock tests key support levels.

Final Take: This is a stock where the future is bright, but the present is shaky. Use the options chain to protect against a drop while keeping an eye on the $340–$360 call strikes as potential breakout triggers. The AI train isn’t stopping—just make sure you’re on the right car.