AVGO Options Signal $360 Bullish Battle: How to Play the AI-Driven Breakout

• AVGO hits 52-week high of $348.23 with record Q4 revenue and a $3.2B cybersecurity acquisition.
• Options data shows heavy call open interest at $360 and puts at $340, hinting at a key support/resistance clash.
• Analyst upgrades and AI product launches could fuel a rally toward $365+ if $345 support holds.

Here’s the thing: AVGO’s options market is locked in a tug-of-war between bulls eyeing a $360 breakout and bears bracing for a $340 drop. With technicals, news flow, and options positioning all pointing to a pivotal week, let’s break down what traders should watch—and how to position for it.

The $360 Call Wall and $340 Put Floor: What the Options Are Saying

The options chain tells a story of cautious optimism. For this Friday’s expiration, 9,607 contracts are open on the $360 call (AVGO20260102C360), while the $340 put (AVGO20260102P340) has 8,433 open contracts. That’s not just noise—it’s a sign that big players are hedging for a potential $360+ move or a sharp pullback below $345.

The RSI at 22.8 suggests oversold conditions, but the MACD histogram (-1.48) still trends downward. This creates a paradox: short-term buyers are stepping in, but long-term momentum hasn’t fully caught up. If AVGO closes above $360 this week, the 30D moving average at $365.58 could become a new floor. But watch the $345 support level—it’s the last line of defense before the 200D MA at $338.30. A break below that would trigger panic in the put-heavy crowd.

News Flow: AI Hype vs. Regulatory Headwinds

Broadcom’s recent headlines are a mixed bag. The $12.5B Q4 revenue beat and $800 price target from Morgan Stanley scream bullish. Throw in the AI-powered networking launch and $3.2B CyberShield acquisition, and you’ve got a recipe for a tech-sector hero stock. But don’t ignore the $50M antitrust fine and executive shakeup—those could create short-term volatility, especially if the spin-off of its semiconductor division stirs uncertainty.

Retail traders might be underestimating how much the AI narrative is fueling this rally. Broadcom isn’t just selling chips anymore—it’s positioning itself as a critical player in the AI infrastructure boom. That kind of narrative can override short-term fines or leadership changes… for now.

Actionable Trade Ideas: Calls, Puts, and the Perfect Strangle

For options players, the AVGO20260102C360 call is a high-conviction play. If AVGO cracks $360 today, this strike could run into the stratosphere. Set a stop just below $345. For next Friday, consider a call spread between $350 (AVGO20260109C350) and $365 (AVGO20260109C365) to capture a potential breakout while capping risk.

Bearish? The AVGO20260102P340 put is your best bet if you think the $345 support fails. But don’t go all-in—this is a defensive play, not a speculative one. For stock traders, consider buying near $345 if the price holds above that level. Your target? The $360–$365 range. If it breaks below $345, exit or hedge with the $340 put.

Volatility on the Horizon: The Week Ahead

The next 72 hours will be critical. If AVGO holds $345 and rallies to $360, the 200D MA could reverse from a threat to a tailwind. But if the stock gaps down below $341.67 (the 30D support), the $300 put (AVGO20260102P300) could see a surge in activity. Either way, the options market is pricing in a binary outcome: breakout or breakdown.

This isn’t a stock to watch from the sidelines. With AI tailwinds, a bullish options setup, and a key support/resistance battle looming, AVGO is a high-conviction trade for both options and equity players. Just make sure your stops are tight—and your expectations are realistic. The road to $800 is long, but the first mile starts this week.