AVGO Options Signal $340 Pivotal Support as Calls at $380 Outweigh Puts—Here’s How to Play the Rebound

• Broadcom (AVGO) plunges 4.8% to $342.52 amid margin concerns, but AI backlog optimism lifts price targets to $475.
• Options data shows heavy call open interest at $380 and $370, while puts dominate at $300–$310, signaling a tug-of-war between bulls and bears.
• Key support/resistance zones at $339–$343 and $326.92–$426.76 frame today’s critical price action.

Here’s the takeaway: AVGO’s options market is locked in a high-stakes standoff. Call buyers are betting on a rebound to $380, while put holders brace for a potential drop to $300. The stock’s 11.4% post-earnings slump has created a volatile but potentially lucrative setup for traders who can read the signals.

The Options Crossroads: Calls at $380 vs. Puts at $300

AVGO’s options chain tells a story of divided conviction. This Friday’s top call open interest (OI) sits at $380 (19,010 contracts), $370 (17,459), and $350 (14,592), while puts lead at $300 (13,119), $310 (9,986), and $320 (9,605). The near-even put/call ratio (1.02) for open interest suggests no clear winner—yet.

But here’s the twist: The $380 call OI is 43% higher than the nearest put (300). That’s not just noise—it’s a signal that institutional players are hedging a rebound. Meanwhile, the $300 puts act as a safety net for those fearing a breakdown below $339.98 support.

Block trading is silent today, but the OI distribution hints at a potential short-term bounce. If AVGO holds above $339.98, the $340–$343 resistance zone could trigger a rally toward $370. A break below $339.98, however, risks a freefall to $326.92 (lower Bollinger Band) or even $300.

News-Driven Optimism vs. Margin Realities

Morgan Stanley and UBS just raised AVGO’s price targets to $475, citing a $73B AI backlog set to ship in 12 months and 55% XPU gross margins. But the stock’s 100-basis-point sequential margin drop post-earnings has traders spooked.

Think about it this way: The AI growth narrative is intact, but near-term execution risks are real. Investors are splitting their bets—buying calls for the long-term story while piling into puts to hedge near-term volatility. This duality explains AVGO’s 11.4% drop despite beating revenue and EPS estimates.

Actionable Trade Ideas: Calls, Puts, and Precision Entries

For options traders:

• Bullish Play: Buy AVGO20251219C340 (strike at key support) and sell AVGO20251219C380 to create a bull call spread. If AVGO rebounds above $340, the $380 calls could surge as short-term optimism kicks in.
• Bearish Hedge: Buy AVGO20251219P300 (highest put OI) and sell AVGO20251219P330 to cap downside risk. A break below $339.98 would validate the put side.

For stock traders:

• Entry at $340: If AVGO holds above $339.98, consider buying near $340 with a stop-loss at $338.29 (200D support). Target $360–$370 if the $343.63 resistance breaks.
• Short at $345: If AVGO rallies but fails to hold $343.63, short near $345 with a stop at $347.50. Target $335–$330 if the $339.98 support collapses.

Volatility on the Horizon: AVGO’s $340 Support Test Could Ignite a Rally or Deep Correction

The next 48 hours will be pivotal. AVGO’s ability to hold $339.98 will determine whether the $380 call buyers or $300 put holders win. If the stock stabilizes, the $340–$343 zone becomes a catalyst for a rebound. But a breakdown below $339.98 could trigger a cascade to $300, validating the puts’ bearish case.

This is a high-risk, high-reward scenario. The AI growth story remains intact, but near-term volatility demands precision. Whether you’re long or short, let the options OI and support/resistance levels guide your entry—and always keep a stop-loss in play.