AVGO Options Signal $330–$350 Battle: How to Trade the AI Giant’s Volatility Play

• Broadcom’s 10% dividend hike and $73B AI backlog fuel bullish momentum
• Q4 earnings beat ($18.02B revenue) and analyst upgrades to $510 price targets
• Options data shows balanced put/call open interest but key strikes at $330–$350

Here’s the thing: Broadcom’s stock is caught in a tug-of-war between AI optimism and short-term margin concerns. The options market isn’t screaming one way or the other—but it’s whispering about a critical price range that could define AVGO’s next move. Let’s break it down.

The $350 Call Wall and $330 Put Floor: A Volatility Tightrope

Looking at this Friday’s options chain, the top OTM calls cluster at $350 (OI: 10,095) and $360 (OI: 9,582), while puts peak at $330 (OI: 11,156) and $310 (OI: 9,894). This isn’t just noise—it’s a crowd of traders hedging a potential $100 swing. The near-1.0 put/call ratio (0.998) suggests balanced sentiment, but the heavy OI at $350 and $330 hints at a psychological battleground. If AVGO breaks above $346.24 (today’s high), those $350 calls could ignite. But if it dips below $337.22 (intraday low), the $330 puts might dominate. No block trades to skew the data—this is pure retail and institutional positioning.

AI Backlog vs. Margin Headwinds: Which Story Wins?

Broadcom’s $73B AI backlog is a goldmine, but management warned of 100-basis-point margin compression in early 2026. The news flow is a mixed bag: analysts love the AI hardware/software dual engine, but regulatory risks (EU VMware scrutiny) and China’s 20% revenue exposure add friction. Here’s the kicker—options traders are pricing in both scenarios. The $350 call wall reflects faith in AI-driven growth, while the $330 put floor acknowledges margin pressures. If you’re bullish, the dividend yield (0.76%) and VMware’s $10B software runway are tailwinds. If you’re cautious, the 52-week low of $138.10 isn’t out of reach if sentiment flips.

Actionable Plays: Calls for Breakouts, Puts for Safety Nets

For options traders: Buy AVGO20251226C350 (Dec 26 $350 calls) if AVGO closes above $346.24 today. Target: $360 (30D MA at $365.64). Stop: $339.93 (30D support). For the bearish angle, AVGO20251226P330 (Dec 26 $330 puts) offer downside protection if the stock tests $337.22. Next Friday’s AVGO20260102C400 (Jan 2 $400 calls) could work as a longer-term bet if the stock rebounds from $330 support.

Stock traders: Consider entries near $341.68 (100D MA) with a target at $360. If AVGO holds above $338.30 (200D support), it could rally to $374.36 (Bollinger middle band). But if it cracks $337.22, tighten stops to $330.75 (lower Bollinger band at $317.44).

Volatility on the Horizon: Navigating AVGO’s AI-Driven Crossroads

Broadcom isn’t a one-trick pony—it’s a two-engine beast with AI semiconductors and VMware software. The next 10 days will test whether the market values its $73B backlog more than its margin risks. For now, the $330–$350 range is the sweet spot to watch. If you’re in, lock in partial profits at $360. If you’re out, wait for a pullback to $330 before buying the dip. Either way, this stock isn’t going to trade in a straight line—but that’s where the opportunities live.