AVGO Options Signal $350 Pivotal Point: Bull Call Spread vs. Bear Put Playbook for 2026

• AVGO trades at $349.21, down 0.83% from $352.13, with intraday support/resistance at $341.67–$343.63
• Options market shows 1.03 put/call open interest imbalance, heavy OI at $350C and $340P for Jan 2 expiry
• Broadcom’s AI networking dominance clashes with insider selling concerns ahead of earnings

The stock is teetering at a critical juncture. Technicals hint at a short-term rebound, but options data reveals a tug-of-war between bulls eyeing a $350 breakout and bears bracing for a $340 collapse. Let’s break down what traders should watch today.The $350 Call Wall and $340 Put Floor: A Battle for Control

Options market makers are stacking up for a fight. This Friday’s $350 call (OI: 6,016) and $340 put (OI: 7,323) show heavy positioning. Think of it like a football game: bulls are building a wall at $350 to push higher, while bears are digging a trench at $340 to hold the line. The 1.03 put/call ratio isn’t screamingly bearish, but the sheer volume in OTM puts suggests some hedging ahead of the Jan 2 expiry. Block trades? None to report—so no whale moves to complicate things.

AI Networking Hype vs. Insider Selling: Which Story Wins?

Broadcom’s Tomahawk 6 dominance in AI infrastructure is a tailwind, but insider selling since Dec 11 clouds the narrative. CEO Hock Tan’s $42.4M ETF move feels like a diversification play, not panic. Yet the 8 separate sales totaling $66.7M—mostly post-earnings—raise eyebrows. Here’s the twist: while the stock clawed back to $350 from Dec 17’s $325 low, the 30-day support at $339.93 is now under siege. Retail investors might be buying the dip, but institutional players are hedging.

Trade Ideas: Bull Call Spread or Bear Put Diagonal?

For options traders, the most compelling setup is a bull call spread using the AVGO20260102C350 and AVGO20260102C360. With the stock hovering near $349, paying ~$1.20 for the 350C (current IV premium) gives you a 5% buffer to break even by Jan 2. If the AI networking story gains traction, the 360C could pop 20%+ on a $355 close.

Bearish? Consider a diagonal put spread with the AVGO20260102P340 (OI: 7,323) and next Friday’s AVGO20260109P335. This lets you lock in near-term protection while scaling into longer-dated puts if the stock stumbles below $344.69 (intraday low).

Stock traders should consider entries near $341.67 (30D support) with a tight stop below $339.93. A break above $350.25 (intraday high) could trigger a rally toward $368.98 (Bollinger Middle Band). But watch for fading momentum if the RSI (currently at 36.3) fails to cross 40.

Volatility on the Horizon: How to Position for 2026

Broadcom’s journey isn’t just about numbers—it’s about narratives. The AI networking boom could propel AVGO to new highs, but capex fatigue or regulatory headwinds might cap gains. Traders who balance the AVGO20260102C350 with a small AVGO20260109P335 position create a "straddle-lite" that profits from either a breakout or breakdown. Either way, the options market is pricing in a volatile January. The question isn’t whether AVGO will move—it’s which direction you’ll bet on before the 2026 AI supercycle accelerates.