AVGO Options Signal $330–$370 Bullish Battle: How to Play the Post-VMware Volatility

• AVGO plunges 5.23% to $323.44, breaking below 30D support at $339.81 and testing the lower Bollinger Band at $326.13.
• Options frenzy: 19,350 open interest at the $330 call (this Friday’s expiry) and 14,483 at the $300 put, signaling a tug-of-war near key levels.
• JMP upgrades AVGO to Outperform with a $900 price target, but EU antitrust scrutiny looms over the VMware deal.

Here’s the deal: AVGO’s options market is locked in a high-stakes standoff between bulls eyeing a rebound and bears betting on a breakdown. The stock’s 5% drop today has created a critical inflection point—will it find support near $326 or collapse further? Let’s break it down.

The $330 Call and $300 Put Showdown

The options data tells a story of divided conviction. For this Friday’s expiry (Dec 19), the $330 call (AVGO20251219C330) has 19,350 open interest—the highest among OTM strikes. That’s a magnet for traders betting on a short-term rebound. Meanwhile, the $300 put (AVGO20251219P300) with 14,483 open interest suggests a floor near $300 if the sell-off accelerates.

The put/call ratio for open interest is 0.968, almost balanced—but the heavy call interest at $330 hints at a psychological threshold. Think of it like a seesaw: if AVGO holds above $326 (lower Bollinger Band), the $330 call could ignite. If it cracks below $320 (a key support level), the $300 put might become a lifeline. No block trades to skew the odds, so retail and institutional players are essentially calling shots here.

News Flow: Growth vs. Regulatory Headwinds

Broadcom’s VMware acquisition and AI push (Cerebras buyout) are long-term tailwinds, but the EU antitrust probe adds friction. The stock’s recent all-time high at $815 feels like a distant memory now, but the fundamentals—$12.8B revenue, $10B buyback—still scream resilience.

Here’s the catch: investors are pricing in growth optimism but hedging against regulatory risks. The $330 call’s popularity reflects hope in the company’s AI and cloud momentum, while the $300 put’s OI shows fear of a pullback if the EU delays VMware integration. It’s a classic case of “buy the dip” vs. “sell the news.”

Actionable Trade Ideas: Calls for Rebound, Puts for Protection

• For options traders: Buy the AVGO20251219C330 call if AVGO stabilizes above $326. Target a 10–15% move to $345–$350 by expiry. Alternatively, sell the AVGO20251219P300 put if you’re bullish on the long-term story but want downside insurance.
• For stock traders: Consider entry near $326 (lower Bollinger Band) with a stop below $320. A successful rebound could push AVGO back toward its 30D support at $339.81. If it breaks $320, target a short-term exit at $300–$310.

Volatility on the Horizon

The next 10 days will be pivotal. If AVGO holds $326, the $330 call could become a breakout catalyst. But if the EU probe escalates, the $300–$310 put zone might force a reevaluation of the stock’s value. Either way, the options market is primed for a directional move—the question is whether you’ll ride the wave or get swept away.