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

• AVGO plunges 2.18% to $333.87, breaking below key 30D support at $339.81
• RSI hits 35.16 (oversold), but MACD (-5.99) warns of lingering bearish momentum
• Call OI surges at $350-$380 strikes, while puts dominate at $300-$330

Broadcom’s stock is caught in a tug-of-war between short-term pain and long-term promise. The price drop has created a volatile but clear setup: options traders are betting big on a rebound from $350, while bears are hedging at $300–$330. Here’s how to navigate the crossroads.

The $350 Call Wall: A Bullish Pressure Point

Options data tells a story of cautious optimism. This Friday’s chain shows AVGO20251219C350 calls with 16,804 open contracts—the highest call OI at any strike. That’s not just noise: it’s a price level where smart money expects a rally. The next tier at $370 (15,040 OI) and $380 (15,040 OI) suggests a potential breakout target. But don’t ignore the puts: AVGO20251219P300 (14,483 OI) and AVGO20251219P310 (13,734 OI) form a bearish wall below $330. If the stock dips further, these puts could trigger a selling spiral. The 0.9686 put/call ratio (call-heavy) hints at a slight bullish bias, but the bearish OI at $300–$330 means downside risks aren’t gone.

AI Revenue Growth vs. Margin Headwinds: The News Paradox

Broadcom’s Q4 results were a mixed bag. While AI revenue hit $6.5B (up 74% YoY) and Cantor Fitzgerald raised its price target to $525, investors are fixated on margin compression. The stock’s 18% drop from highs reflects fears that AI’s lower-margin nature will hurt earnings. But here’s the twist: analysts still see a 33% upside to $455. The $73B AI backlog—$53B in custom silicon—means this isn’t a temporary blip. Retail traders might be overreacting to short-term margin worries, creating a buying opportunity for those who believe in the long-term AI story.

Trade Ideas: Leverage the Options Imbalance

For options traders, the AVGO20251219C350 call is a high-conviction play. If the stock holds above $332.1 (intraday low), these calls could catch a rebound. For next Friday, AVGO20251226C360 (4,533 OI) offers a slightly safer entry if the bounce stalls. Bears should eye AVGO20251219P310 (13,734 OI) as a hedge—buying these puts could protect against a breakdown below $326.13 (lower Bollinger Band).

Stock Positioning: Buy the Bounce or Short the Weakness

• Bullish entry: Buy AVGO near $332.1 (intraday low) with a stop below $326.13. Target $341.27 (30D support/resistance) first, then $350 (call-heavy zone).
• Bearish entry: Short above $346.43 (intraday high) if the stock fails to hold $341.27. Target $330–$320, where heavy put OI could accelerate the decline.

Volatility on the Horizon: Balancing the Scales

Broadcom’s story isn’t just about numbers—it’s about perception. The market is pricing in margin fears today but ignoring the $73B AI backlog tomorrow. The options data reflects this tension: bulls are stacking up at $350, while bears are bracing for a $300 collapse. For traders, the key is timing. If AVGO can reclaim $341.27, the call-heavy $350–$380 strikes could ignite a short-covering rally. But if the stock cracks $326.13, the puts at $300–$310 might turn this into a short-term bear trap. Either way, the next 72 hours will tell us whether this is a buying opportunity or a warning shot.

The bottom line? AVGO is at a crossroads. The technicals and options data suggest a volatile bounce is possible, but fundamentals still point to long-term AI-driven growth. Position yourself accordingly—and don’t let short-term noise cloud your view of the bigger picture.