AVGO Options Signal $350–$380 Bullish Setup: How to Play the AI Giant’s Rebound

• Broadcom (AVGO) trades at $341.01, up 0.35% with volume surging to 25.8M shares—nearly double its 30-day average.
• Options market shows heavy call open interest at $350–$400 strikes, while puts dominate below $300, hinting at a $350 psychological floor.
• Analysts still target $455 despite recent 17% drop, citing AI revenue growth and a 10% dividend boost.

Here’s the takeaway: AVGO is perched at a crossroads. Technicals hint at a short-term bounce from oversold levels, while options data suggests big money is bracing for a $350–$380 price battle. Let’s break down why this could be a setup for traders with a 1–2 week time horizon.

The $350–$400 Call Wall: A Bullish Bet or a Trap?

The options chain tells a story of cautious optimism. This Friday’s top call open interest piles up at $350 (16,103 contracts), $370 (19,056), and $400 (13,708). That’s not just noise—it’s a wall of capital betting AVGO will claw back above $350 before expiration. But here’s the twist: the put/call ratio for open interest is nearly balanced at 0.98, meaning bears aren’t cowering. The top puts at $300 (14,216) and $310 (13,089) suggest some hedgers are ready for a deeper pullback.

What’s the risk? If AVGO can’t break above $347.50 (its intraday high today), the call-heavy positioning could backfire. But if it holds $335.06 (today’s low), the RSI at 37.5 implies a rebound is statistically likely. No major block trades to worry about—so far, it’s retail and institutional options players calling the shots.

News Flow: AI Margins vs. Analyst Optimism

Broadcom’s 17% drop since late November has left the stock trading at a discount to its fundamental fair value estimates ($290–$404). The bad news? AI-driven hardware margins are squeezing profits. The good news? Google and Meta contracts are pouring in, and analysts still see a 33% upside to $455. That disconnect between near-term pain and long-term AI potential is exactly what options traders are pricing in.

Here’s the catch: Retail investors might be overreacting to margin headlines, while institutions are betting on the dividend hike and VMware integration progress. If you’re trading this name, you’re hedging a narrative war between short-term pessimism and long-term AI bullishness.

Trade Ideas: Calls, Spreads, and Precision Entries

For options players: AVGO20251226C350 (Dec 26 $350 call) is a clean play if the stock breaks $341.50. With 16,103 contracts in open interest, this strike could act as a self-fulfilling prophecy. A cheaper alternative? A bull call spread with AVGO20251226C340 ($9296 OI) and AVGO20251226C360 (3,666 OI) to cap risk.

For stock buyers: Consider entries near $335.06 (today’s low) with a stop just below $333. If it holds, target $345–$350 as a first profit zone. The 30-day support at $339.81 is a critical level—if AVGO closes below that, the $326.39 lower Bollinger Band becomes a new battleground.

Volatility on the Horizon

The next two weeks will test AVGO’s resolve. A break above $347.50 could trigger a short-covering rally fueled by the call wall. A close below $339.81 would validate the bear case, with puts at $300–$310 stepping in as liquidity providers. Either way, this is a stock where options sentiment and technical levels are aligned—for now. Stay nimble, and watch that $350 strike like a hawk.