AVGO Options Signal $360 Bullish Battle: How to Play the Post-Earnings Volatility

• Broadcom’s $61B VMware deal and $12.5B earnings beat are fueling a stock surge near $350
• Options data shows heavy call open interest at $360 and $370, with puts eyeing $330 as key support
• RSI near oversold 39 and bullish engulfing candle hint at potential breakout

Here’s the thing: Broadcom’s stock isn’t just dancing on strong fundamentals—it’s got options traders locked in a high-stakes chess match around the $360 level. With the stock trading at $350.22 and a bullish engulfing pattern forming, the next move could be a setup for aggressive longs or cautious hedges. Let’s break down why $360 is the strike to watch and how to position for it.

The $360 Call Wall: A Bullish Battleground

Options market sentiment is split but telling. This Friday’s chain shows AVGO20251226C360 calls with 13,399 open contracts—the highest of any strike. That’s not just noise; it’s a wall of liquidity that could push the stock higher if buyers show up. The $370 and $380 calls trail behind, but the real story is the balance between calls and puts. With a put/call ratio of 0.98 (nearly even), the market isn’t leaning hard in either direction. But here’s the twist: those $330 puts (12,407 OI) are a safety net for bears. If the stock dips below $347.14 (today’s low), that support level at $341.67 could get tested. Don’t ignore the risk—this isn’t a one-way bet.

News Flow: Why the Options Bets Make Sense

Broadcom’s VMware acquisition isn’t just a headline—it’s a strategic domino. By merging VMware’s cloud infrastructure with its own semiconductors, Broadcom is building a tech ecosystem that analysts say could drive 2026 revenue growth. The recent $12.5B earnings beat and $3.2B AI acquisition (Cerebras) reinforce this narrative. But here’s the catch: the market isn’t pricing in instant magic. The stock’s 8% post-earnings pop was impressive, but the RSI at 39 suggests a breather might be coming. Think of it like a sprinter catching their breath before the next dash—opportunities exist, but timing is key.

Trade Ideas: Calls, Puts, and Precision Entries

For options players, the AVGO20251226C360 call is the most compelling. If the stock breaks above today’s high of $352.86, those $360 calls could see a pop. For a safer play, consider a bull call spread: buy AVGO20251226C360 and sell AVGO20251226C370 to cap risk. For stock traders, the sweet spot is $347.14—if support holds, target $360 as a first profit zone. But set a hard stop below $341.67 (30D support). If the stock gaps down Friday, the $330 puts could act as a cushion, but only if volatility spikes.

Volatility on the Horizon: What’s Next for AVGO

The next 72 hours will be critical. With the stock hovering near its 30D moving average ($365.06) and Bollinger Bands widening, expect choppy action. The long-term picture is bullish—those 200D moving averages ($285) are a distant memory—but short-term traders need to respect the $360 psychological barrier. If the stock closes above it this week, the path to $380 opens. If not, the $330-340 range could become a battleground. Either way, the options market has already priced in a fight.

Bottom line: Broadcom’s fundamentals are firing on all cylinders, but the options data tells a story of cautious optimism. Play the $360 level like a poker hand—aggressive if the stock breaks out, defensive if it falters. And keep an eye on that new CFO appointment in January—leadership changes can be wildcards in earnings-driven stocks.