AVGO Options Signal $350 Bullish Battle: How Traders Can Position for a Volatile Finish

• Broadcom (AVGO) plunges 4.9% to $337.21, breaking below key support at $343.92 (Bollinger Middle Band).
• Options frenzy: 17,991 puts at $310 (most OI) vs. 17,709 calls at $350—showing a tug-of-war between bears and bulls.
• Block trade alert: 400 contracts of AVGO20260320C360 ($360 call) traded for $836K, hinting at March 2026 positioning.

Here’s the takeaway: AVGO is teetering at a crossroads. The stock’s 5% drop today has triggered a surge in defensive puts but left calls clustered near $350—a level that could either spark a rebound or confirm a breakdown. Let’s break down what this means for your strategy.

The $350 Bullish Battleground and Hidden Risks

The options market is split. Calls at $350 (this Friday’s top OI: 17,709) suggest traders are bracing for a rebound above the 30D support/resistance zone of $348.62–$350.37. But puts at $310 (17,991 OI) tell a different story—massive bearish conviction if the stock cracks $328.74 (lower Bollinger Band).

The wildcard? That AVGO20260320C360 block trade. Buying $360 calls with March 2026 expiry implies someone expects a sharp rebound—possibly tied to Broadcom’s AI chip roadmap or VMware growth. But with insider selling (like CEO Tan’s $24M exit) casting doubt, this trade could backfire if earnings momentum falters.

News vs. Options: A Tale of Two Narratives

Broadcom’s Q4 beat and AI chip wins (up 74% YoY) justify the $364.50 2026 price target from analysts. Yet insider selling—$490M in shares dumped over 12 months—creates friction. The options data mirrors this duality: bullish calls at $350 clash with bearish puts at $310.

Retail traders might overreact to the $310 put frenzy, but institutional buyers are eyeing the $350 call cluster. Think of it like a chess match: bulls need a close above $350.37 to reclaim the 30D support, while bears aim to drive the stock below $328.74 to trigger more panic selling.

Actionable Trades: Calls, Puts, and Precision Entries

For options traders, the most compelling setups are:

• AVGO20260116C350 (this Friday’s $350 call): If AVGO rallies above $350.37 (30D resistance), this strike could explode. Risk? Expiry in 2 days means all-or-nothing.
• AVGO20260123P310 (next Friday’s $310 put): A safer bet if the stock dips below $338.30 (200D support). The 1.08 put/call OI ratio also favors downside protection.

For stock traders, key levels are:

• Entry near $338.30 (200D support zone) if RSI (61.5) holds above 50. Target: push back toward $348.97 (today’s open).
• Entry near $348.60 (30D support) if MACD (-4.28) crosses above its signal line (-5.4). Target: reclaim $350.69 (intraday high).

Volatility on the Horizon: What to Watch Next

The next 72 hours will be critical. If AVGO closes above $350.37, the $350 call frenzy could ignite a short-covering rally. But a close below $328.74 would validate the put-heavy bear case. Either way, the March 2026 $360 call (AVGO20260320C360) is a structural bet—worth monitoring for signs of institutional conviction.

This isn’t just about numbers. It’s about psychology: bulls clinging to VMware’s software moat, bears wary of insider exits. Your edge? Positioning at $350 or $310 with clear stop-loss levels. The market’s already pricing in extremes—now it’s your move.