AVGO Options Signal $360 Bullish Battle: How to Play the AI Chip Giant’s Volatility Play

• Broadcom (AVGO) trades at $348.67, up 0.74% with a 30-day support zone at $340–$342.
• Options data shows heavy call open interest at $360 and $355, while puts at $340 and $300 hint at downside risk.
• RSI at 22.81 suggests oversold conditions, but Bollinger Bands show the stock is near the lower band.

Here’s the core insight: AVGO’s options market is locked in a tug-of-war between bulls eyeing a $360 breakout and bears bracing for a $340 support test. The stock’s 50% surge in 2025 has created a volatile crossroads—AI growth is real, but margin risks and insider selling add friction. Let’s break it down.

The $360 Call Wall and $340 Put Floor: A Volatility Chess Match

The options chain is a story of extremes. For this Friday’s expiration, AVGO20260102C360 (OI: 9,607) and AVGO20260102C355 (OI: 6,500) dominate call open interest, suggesting institutional bets on a $360+ move. Meanwhile, AVGO20260102P340 (OI: 8,433) and AVGO20260102P300 (OI: 7,968) show heavy put demand, with the $300 strike acting as a psychological floor. The put/call ratio of 1.05 (favoring puts) hints at cautious optimism—bulls are active, but bears aren’t backing down.

This setup screams of a key inflection point. If AVGO breaks above $360, the $370 call wall (OI: 6,485) could fuel a rally toward $380. But a close below $340 would trigger a test of the 200-day support at $338.30. The absence of block trades means no whale-driven surprises—this is a retail and institutional tug-of-war.

AI Growth vs. Margin Risks: News That Could Tip the Scales

Broadcom’s Q4 results were a blockbuster: $18B revenue, $6.5B in AI chip sales, and a $73B AI backlog. Analysts like Bernstein and Goldman Sachs are bullish, citing Anthropic’s $21B order and partnerships with Google and OpenAI. But the news isn’t all sunshine. CFO Kirsten Spears warned of margin compression as AI systems (lower-margin hardware/software) dominate revenue. Insider selling by Brazeal and Spears also raises eyebrows—though not uncommon, it adds noise to the narrative.

The key takeaway? The stock’s fundamentals justify the AI premium, but near-term volatility will hinge on margin guidance and client concentration risks. If AI sales hit $8.2B in Q1 as expected, the $360 level becomes a floor. But if margins slip further, the $300 put wall could become a reality check.

Trade Ideas: Calls for the Breakout, Puts for the Safety Net

For options traders:

• Bullish Play: Buy AVGO20260102C360 (strike: $360) or AVGO20260109C365 (strike: $365) for next Friday. These strikes align with the call OI hotspots and offer leverage if AVGO breaks above $360.
• Bearish Hedge: Buy AVGO20260102P340 (strike: $340) to protect against a drop below the 30-day support zone.

For stock traders:

• Entry: Consider buying AVGO near $347.34 (intraday low) if the 30-day support at $340 holds.
• Target: Aim for $360.66 (intraday high) as a first target, with a stretch goal of $370.
• Stop: Exit if the stock closes below $339.93 (lower end of 30-day support).

Volatility on the Horizon: Balancing AI Optimism and Margin Realities

Broadcom’s story is a classic growth-at-a-cost scenario. The AI backlog and custom ASIC demand are tailwinds, but margin risks and insider selling add headwinds. The options market is pricing in a $360–$340 range battle, with the outcome likely hinging on Q1 earnings and client concentration updates. For now, the data leans slightly bullish—but don’t ignore the put wall at $300. This isn’t a straight-up trade; it’s a volatility play where timing and risk management matter more than conviction.