AVGO Options Signal $350 Bull Call Play as AI Growth Fuels Short-Term Optimism

• AVGO surges 1.9% to $348.03, trading near 200D support ($338.30) and 30D resistance ($341.67)
• Options OI shows 12,447 calls at $350 (this Friday) vs. 11,795 puts at $330
• RSI at 35.5 hints at oversold conditions, while Bollinger Bands show price near lower bound
• Insider selling by CEO Hock Tan ($42M in shares) sparks mixed market reactions

Here’s what’s happening: The options market is quietly building a bullish case for AVGO. With call/put open interest nearly balanced (ratio: 0.98), but heavy concentration at $350 calls and $330 puts, traders are hedging a breakout scenario. Let’s break it down.

Bull Call Accumulation at $350 vs. Put Protection at $330

The options data tells a story of cautious optimism. For this Friday’s expiration, AVGO20251226C350 has 12,447 open contracts—the highest of any strike. That’s not just noise; it’s a vote of confidence that AVGO could test $350 before the close. Meanwhile, AVGO20251226P330 (11,795 OI) acts as a floor, suggesting institutional players are hedging against a pullback.

But here’s the catch: The RSI at 35.5 and MACD (-6.8) still lean bearish in the short term. If AVGO fails to hold above $341.67 (30D resistance), those puts could get exercised. The key is whether today’s 1.9% rally sustains past the 200D moving average ($284.36) or fizzles.

AI Revenue Surge vs. Insider Selling: Which Story Wins?

Broadcom’s Q4 results are hard to ignore. $18B in revenue, 74% AI chip growth, and a $73B backlog scream long-term value. But the CEO’s $42M share sale on Dec 18 has traders second-guessing.

Think about it this way: Insiders often sell for tax efficiency or diversification, not bearishness. The market’s 1.9% rally this week suggests investors are focusing on the AI narrative—VMware integration, Tomahawk 6 chips, and $26.9B FCF projections. Still, the puts at $330 show some caution. If AI demand falters or VMware integration stumbles, that $330 level could become a battleground.

Trade Ideas: Calls for Breakouts, Puts for Protection

For options traders: AVGO20251226C350 is your best bet if AVGO breaks above today’s intraday high ($348.24). Target $360–$370 by Friday. For downside hedges, a put spread at $330 and $310 (using AVGO20251226P330 and AVGO20251226P310) caps risk while AVGO tests support.

Stock traders: Consider entry near $339 (support zone 339.93–341.67) if the 200D line holds. A breakout above $348.24 could target $360, aligning with the call-heavy OI. Exit near $365 if the 30D MA ($365.37) becomes a magnet.

Volatility on the Horizon

The next 72 hours will test AVGO’s resolve. A close above $348.24 could trigger a short-term rally fueled by the $350 call buyers. But a drop below $338.54 (intraday low) would validate the puts at $330. Either way, the AI growth story gives this stock legs—if the fundamentals hold. Stay nimble, and watch those key levels like a hawk.