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

• AVGO trades at $349.99, down 0.6% from $352.13, with volume surging to 11.9M shares.
• Options OI favors puts slightly (Put/Call ratio: 1.027), but heavy call interest at $355–$400 strikes hints at bullish positioning.
• Insider selling (CEO’s $42.4M tax-driven sale) clashes with Truist’s $510 price target and AI-driven growth optimism.

The stock is teetering near its 30D support zone ($341.67) while options data reveals a tug-of-war between cautious bears and aggressive bulls. Here’s how to navigate the crossroads.

Bull Call vs Bear Put Imbalance: Where Are the Whales?

The options market is split at the seams. For this Friday’s expiration (Jan 2, 2026), 9,462 open calls at $360 and 7,323 puts at $340 dominate the OI leaderboard. That’s not just noise—it’s a signal.

Think of it like a seesaw:

• Bulls are stacking calls above $355–$400, betting on a rebound to Truist’s $510 target. The $400 call (OI: 4,415) is a psychological hurdle, but the $355 strike (OI: 4,747) looks like a more realistic near-term target.
• Bears are hedging with puts at $340 (OI: 7,323) and $300 (OI: 7,200), suggesting they expect a test of the 200D support ($338.30). The $300 put’s high OI is extreme, though—it’s more of a panic stop-loss than a conviction play.

Block trades? None. So no whale moves to skew the data. Just institutional players and retail algorithms grinding it out.

News vs Options: AI Optimism vs Insider Doubts

Broadcom’s story is a mixed bag. On one hand, its 68% EBITDA margin and $73B software backlog make it a cash-cow in the AI infrastructure boom. On the other, CEO Hock Tan’s $42.4M sale (structured as an ETF conversion) and 1,000-share buy by director Harry You feel like a tug-of-war between confidence and caution.

The options market isn’t buying the bearish narrative. Despite insider sales, call OI at $355–$400 suggests traders see a path to $360+ if the stock holds above $341.67 (30D support). The Truist $510 target is a longshot, but the AI-driven narrative gives bulls a fighting chance.

Trade Ideas: Precision Strikes for AVGOFor Options Traders:

• Bull Call Spread (This Friday): Buy AVGO20260102C355 (strike at $355) and sell AVGO20260102C370 to cap risk. The stock needs to break $355 to justify the trade, but the $370 strike acts as a buffer if the rally stalls.
• Bear Put Play (Next Friday): Buy AVGO20260109P340 if the stock dips below $344.69 (intraday low). The $340 strike is a key level—break below $338.30 (200D support) and the put could gain steam.

For Stock Traders:

• Entry near $341.67 (30D support). If the stock holds here, target $360 (Bollinger Middle Band) as a short-term goal. A break above $368.98 (middle band) could trigger a run to $380.
• Stop-loss below $338.30 (200D support). A breakdown here would validate the bearish puts at $300.

Volatility on the Horizon: Bulls Have the Edge

The stock is sitting on a knife edge. The RSI at 36.27 suggests oversold conditions, but the MACD (-6.24) and bearish histogram (-3.19) warn of lingering downward pressure.

Here’s the play: Bulls need a green candle above $350.25 (intraday high) to regain control. If they fail, bears will test $338.30. Either way, the options market is pricing in a $350 pivot point—and that’s where the action will be.

Bottom line: This isn’t a binary bet. It’s a chess match. Play your pieces carefully.