AVGO Options Signal $340–$360 Battle: How to Play the AI Giant’s Volatility Playbook

• AVGO trades at $350.28, up 0.25% with volume surging past 7.16M shares.
• Options market favors caution: Put/call ratio at 1.04 (slightly bearish), with heavy open interest at $340 puts and $360 calls.
• Technical bias leans bullish: Short-term Kline pattern and 30D support/resistance levels align with a potential breakout.

The options market and technicals are locked in a tug-of-war for AVGO. While the stock clings to its 30D support zone ($339.93–$341.67), call buyers are eyeing a $360–$370 breakout, and puts are bracing for a $340–$300 drop. Let’s break down what this means for your strategy.

The $340–$360 Options Crossroads

The options chain tells a story of divided expectations. For this Friday’s expiry (Jan 2, 2026), AVGO20260102P340 (9,001 contracts) and AVGO20260102C360 (9,001 contracts) dominate open interest, suggesting a high-stakes battle near these levels. Puts at $300 and $325 also hint at deeper bearish positioning, but the call-heavy $360–$400 strikes show conviction in a near-term rally.

The 1.04 put/call ratio (based on open interest) isn’t a red flag—it’s a nudge. Puts are guarding against a pullback, but calls are primed to capitalize on a breakout. The key risk? If AVGO fails to hold above $349.30 (intraday low), the $340 put strike could become a gravity well.

News That Could Tilt the Scales

Broadcom’s CEO selling $34.56M in shares (at $350.17) raises eyebrows, but insider sales don’t always signal doom. The bigger picture? Broadcom’s AI hardware bets are both a strength and a vulnerability. The recent 15% earnings drop was tied to slower AI delivery timelines and margin pressures, but management’s dividend hike and VMware integration still paint a resilient story.

Meanwhile, Yahoo Finance’s warning about AI “circular financing” positions AVGO as a safer bet than speculative startups. If the sector corrects, Broadcom’s hardware moat and 51% YTD gains could make it a haven.

Actionable Trade SetupsFor Options Traders:

• Bullish Play: Buy AVGO20260102C360 (9,001 OI) if AVGO breaks above $352.68 (intraday high). Target: $365–$370 by expiry.
• Bearish Hedge: Buy AVGO20260102P340 (9,001 OI) if the stock dips below $349.30. Stop loss at $345.
• Longer-Term Play: For next Friday (Jan 9), AVGO20260109C355 (1,930 OI) offers a cheaper entry if the stock consolidates.

For Stock Traders:

• Entry Near $341.67 (30D resistance): Buy if AVGO holds above $349.30. Target: $366.30 (Bollinger Middle Band). Stop: $338.30 (200D support).
• Bear Call Spread: Sell AVGO20260102C360 and buy AVGO20260102C370 if AVGO rallies to $352.68. Caps risk while profiting from a $360–$370 squeeze.

Volatility on the Horizon

AVGO’s dance between $340 and $360 isn’t just noise—it’s a setup. The options market is pricing in a 10–15% move by Jan 2, and the technicals are primed to either validate or shatter that range. If the stock holds its 30D support, the $360 call strikes could be your golden ticket. But if it cracks below $340, the puts will turn from hedges into lifelines.

Bottom line: This is a stock at a crossroads. The AI infrastructure tailwinds are real, but so are the margin risks. Your edge? A clear plan to exploit the $340–$360 battleground—whether you’re betting on a breakout or bracing for a breakdown.