AVGO Options Signal $350 Bull Call Battle: How to Play the AI Giant’s Volatility

• Broadcom (AVGO) surges 2.2% to $339.86 amid a short-term bearish trend and long-term range-bound pattern.
• Options data shows heavy call open interest at $350 and $360 for next Friday, while puts dominate at $310–$325.
• Insider selling and margin concerns clash with AI-driven analyst optimism and $450+ price targets.

Here’s the core insight: AVGO’s options market is locked in a tug-of-war between cautious bears and opportunistic bulls. The stock’s 2.2% intraday gain masks a fragile technical setup, with the 30-day support/resistance cluster at $348.62–$350.37 acting as a critical battleground. While the put/call ratio (1.07) hints at bearish sentiment, the concentration of call open interest at $350 and $360 for next Friday suggests a potential breakout play. Let’s break it down.

The $350 Call Wall and $310 Put Floor: A Volatility Playbook

The options chain tells a story of caution and ambition. For this Friday’s expirations, OTM calls peak at $360 (OI: 7,424) and $370 (OI: 6,794), while puts cluster at $325 (OI: 9,929) and $315 (OI: 5,650). But the real drama unfolds in next Friday’s contracts: AVGO20260116C350 (OI: 20,281) and AVGO20260116C400 (OI: 14,985) dominate the call side, while puts at $310 (OI: 18,341) and $300 (OI: 16,620) anchor the downside.

This setup implies two things:

• Bulls are hedging a potential rebound off the 200-day range ($338.30–$343.63) with calls at $350–$360.
• Bears are bracing for a test of the lower Bollinger Band ($306.71) with puts at $310–$325.

The lack of significant block trades today means no whale-driven surprises, but the OI distribution suggests a high probability of a volatile move—either up or down—before next Friday’s expirations.

News vs. Options: AI Optimism vs. Short-Term Pain

Broadcom’s recent news is a mixed bag. The December 14.1% drop and CEO’s $24.3M insider sale have rattled nerves, but Q4 results (74% AI chip growth) and analyst price targets ($450–$480) keep long-term optimism alive. The options market reflects this duality:

• Bearish puts at $310–$325 align with the recent 5.4% pullback and margin concerns.
• Bullish calls at $350–$400 mirror analysts’ belief in AI-driven growth, even if the stock is 19.5% below its 52-week high.

Investor perception is key here. If the AI sector rebounds (e.g., from Trump’s defense budget shift), AVGO’s call-heavy OI could ignite a short-covering rally. But if margin pressures persist, the put wall at $310 might cap losses.

Trade Ideas: Calls for Breakouts, Puts for Protection

For options traders, the most compelling plays are:

• AVGO20260116C350 (next Friday): Buy if AVGO breaks above $348.62 (30-day support). Target: $350–$360. Risk: Below $340.
• AVGO20260116P310 (next Friday): Buy if AVGO dips below $338.29 (200-day support). Target: $310–$320. Risk: Above $335.

For stock traders, consider:

• Entry near $340 if the 200-day range holds. Target: $350 (30-day resistance). Stop: $333.50 (intraday low).
• Short-term entry near $333.50 if the stock tests the Bollinger Band. Target: $325 (put-heavy zone). Stop: $340.

Volatility on the Horizon: Navigating AVGO’s AI-Driven Crossroads

Broadcom sits at a crossroads. The options market is pricing in a high-stakes battle between AI optimism and near-term margin pressures. While the technicals suggest a range-bound consolidation, the call-heavy OI at $350 implies a potential breakout if AI sentiment rebounds. Traders should watch the 30-day support/resistance cluster ($348.62–$350.37) like a magnet—break above it, and the bulls gain momentum; fall below, and the bears tighten their grip. Either way, AVGO’s volatility isn’t going anywhere in 2026.