AVGO Options Signal $340 Put Contingency as Bulls Target $370 Breakout: How to Play the AI Giant's Volatility Playbook

• Current Price Action: AVGO trades at $346.9, down 0.84% from $349.85, with volume surging to 5.28M shares.
• Options Imbalance: Put/call open interest ratio stands at 1.04, with heavy bearish positioning at $340 and $300 puts.
• Technical Setup: RSI at 27.59 (oversold) and price near Bollinger Bands lower bound ($308.92) hint at potential rebound.

The core insight? Options market sentiment and technicals are painting a volatile picture: bears are hedging a $340 support break, while bulls are eyeing a $370 breakout. Let’s unpack why this $346.9 level is a critical crossroads for AVGO.Bullish Call Piles vs. Bearish Put Fortresses

AVGO’s options chain is a chessboard of strategic bets. This Friday’s $360 call (OI: 10,183) and $370 call (OI: 7,007) show heavy bullish conviction, while next Friday’s $315 put (OI: 4,600) and $210 put (OI: 3,113) suggest deep bearish hedging. The 1.04 put/call ratio (open interest) confirms a bearish bias, but don’t ignore the RSI’s oversold reading—this could spark a short-term rebound. The key question: Will the $341.67 (30D support) hold, or will bears push below $338.30 (200D support)?

News-Driven Narrative: AI Tailwinds vs. Margin Scrutiny

Broadcom’s Q4 earnings ($1.95/share) and 28.2% revenue growth are impressive, but insider selling by CEO Hock Tan ($42.38M) and CFO Kirsten Spears ($1.22M) raises eyebrows. Analysts remain bullish, hiking price targets to $510 (Truist), but the Singapore packaging facility’s margin risks can’t be ignored. The dividend hike to $0.65/share (0.7% yield) signals confidence, yet the market is pricing in a tug-of-war between AI-driven optimism and near-term margin pressures.

Actionable Trade Ideas: Play the Volatility Spectrum

• Options Play: Buy AVGO20260109P340 puts for downside protection. If AVGO breaks $341.67, these $340 puts could gain 20-30% on the move. For bulls, AVGO20260102C360 calls (strike $360, expiring Jan 2) offer leverage if the stock rebounds above $349.87 (intraday high).
• Stock Play: Consider entries near $345 if the 30D support (339.93–341.67) holds. Target $360–$370 if the 30D MA (365.47) acts as a magnet. If the stock breaks below $338.30, short-term bears could target $330, but watch for a rebound at the 200D MA (344.82).

Volatility on the Horizon

AVGO’s options market is a microcosm of the broader AI sector’s tension: high growth potential vs. margin fragility. The coming weeks will test whether the $340–$345 range can act as a floor or if bears force a deeper correction. For traders, the key is to balance bullish call exposure with bearish put hedges—AVGO isn’t a one-way trade. Stay nimble: this stock could swing 10% either way in a heartbeat.