AVGO Options Signal $360 Bullish Battle: How to Play the AI Infrastructure Catalyst

• Broadcom (AVGO) trades at $350.94, up 0.46% with a bullish engulfing pattern amid short-term bearish pressure.
• Options data shows heavy call open interest at $360 and put OI at $330, hinting at a critical support/resistance clash.
• Company news underscores $20B AI revenue surge and a $100B+ OpenAI partnership—fueling long-term optimism.

Here’s the takeaway: AVGO is poised for a breakout above $360 if options buyers and AI-driven demand align. The stock’s technicals and options positioning suggest a high-stakes inflection point—let’s break it down.

The $360 Call Wall and $330 Put Floor: A Battle for Direction

The options market is locked in a tug-of-war. This Friday’s top call open interest piles up at $360 (OI: 13,399), while puts max out at $330 (OI: 12,407). This near-symmetric OI suggests two camps: one betting on a push toward AI-driven highs, the other bracing for a pullback.

But here’s the twist: The put/call ratio for open interest is 0.98, almost perfectly balanced. That’s not typical for a stock with a 52% YTD gain. It means smart money is hedging both ways—anticipating volatility but unsure of direction. The danger? If the stock gaps below $330, the put wall could trigger a cascade of stop-loss orders. Conversely, a close above $360 might ignite a short-covering rally.

AI Revenue Surge Validates Options Optimism

Broadcom’s recent headlines are no accident. The company just reported $20B in AI-related revenue and a $100B+ partnership with OpenAI. These aren’t abstract numbers—they’re concrete catalysts for demand in its XPUs and networking chips.

The catch? Competitors like NVIDIA (NVDA) are also surging. But Broadcom’s 50% YoY semiconductor growth and $26.9B free cash flow give it a unique edge. The options market is pricing in this narrative: the $360 call wall aligns with the 30-day moving average (365.07), a level where institutional buyers often step in.

Actionable Trade Ideas: Calls, Puts, and Precision Entries

For options traders:

• This Friday (Dec 26): Buy AVGO20251226C360 at $350.94. Target a $365 close to capture the short-term squeeze.
• Next Friday (Jan 2): Buy AVGO20260102P330 as insurance. If AVGO dips below $341 (30D support), these puts could hedge downside risk.

For stock players:

• Entry near $341 (30D support range: $339.93–$341.67). If the stock holds here, target $365—the 30D MA and a level where call buyers could force a breakout.
• Stop-loss below $338 (200D support range: $338.30–$343.63). A break here would signal a shift in momentum.

Volatility on the Horizon: The AI Infrastructure Play

Broadcom’s story isn’t just about today’s options—it’s about 2026’s $50–$100B AI revenue pipeline. The Tomahawk 6 switch and VMware integration are already reshaping data centers. But the market won’t wait forever:

• Short-term: Watch the $360 call wall this Friday. A close above it could trigger a 5–7% pop.
• Long-term: The $330–$360 range will define AVGO’s next chapter. Break above $360, and the 200D MA at $343 becomes a floor—not a ceiling.

Bottom line: This is a stock at a crossroads. The options data and fundamentals both scream "AI is the new oil"—but the price action will decide who gets the gold. Stay nimble, and keep an eye on that $360 level. It’s not just a strike price; it’s a psychological battleground.