AVGO Options Signal $360 Bullish Bias: How to Play the AI Infrastructure Play with 12% Upside Potential

• AVGO trades at $350.81, up 0.4% with volume surging past 5.8M shares.
• Options put/call ratio for open interest is 1.04, showing near-even bets on both sides.
• Top call OI at $360 and $370 suggests a $10+ rally is in focus.

Here’s the thing: Broadcom’s options market is whispering a bullish story, even as the stock hovers near key support. The $360 strike is a magnet for call buyers, and technicals hint at a breakout scenario—if AI-driven demand holds. Let’s break it down.

Bullish Pressure at $360, But Puts Guard Against $340

Looking at this Friday’s options chain, the AVGO20260102C360 call has 9,001 open contracts—the most of any strike. That’s not random. Traders are pricing in a 3% move above current levels, likely betting on Broadcom’s AI infrastructure tailwinds. But don’t ignore the puts: the AVGO20260102P340 put has 7,975 open contracts, anchoring downside risk near the 30D support zone ($339.93–$341.67).

The put/call ratio (1.04) isn’t screaming bearish, but it’s not fully committed bullish either. That’s a good sign—it means the market is hedging its bets. If the stock breaks above $360, the 30D moving average at $365.22 could act as a stepping stone. But watch the RSI (30.2) closely: it’s still in oversold territory, so a rebound is likely… unless margin concerns derail the AI hype.

News Flow: AI Growth vs. Near-Term Profit-Taking

Broadcom’s Q4 results were a mixed bag. Yes, AI semiconductor revenue jumped 74% to $6.5B, and the dividend hike is a win for income investors. But the 21% post-earnings selloff—driven by margin warnings and lower-than-expected AI backlog—has left a scar.

The good news? Institutional investors like Weatherly Asset Management just boosted their stake by 43.8%, now owning 76.43% of the float. That kind of commitment suggests long-term confidence in AI infrastructure demand. The bad news? Insiders sold $230M worth of shares recently, and analysts like Michael Burry are cautioning against overvaluation.

Trade Ideas: Calls for $360, Puts for $340, and a Core Position

For options traders:

• Bullish Play: Buy the AVGO20260102C360 call. Target $370 (1.4% above strike) before expiration. If the stock gaps up, the AVGO20260109C400 call (2574 OI) could be a rolling target.
• Bearish Hedge: Buy the AVGO20260102P340 put to protect against a drop below 30D support.

For stock buyers:

• Entry near $341.67 (upper 30D support). Target $370 (12% gain) if the AI narrative holds.
• Stop-loss at $338.30 (lower 200D support).

Volatility on the Horizon

Broadcom’s story is a tug-of-war between AI optimism and near-term execution risks. The options market is pricing in a $360 inflection point—break above that, and the 200D MA at $343.63 becomes irrelevant. But if margins continue to compress or AI demand slows, the $310–$325 Bollinger Band floor could test patience.

Bottom line: This is a high-conviction trade for AI believers. The $360 call is your rocket fuel; the $340 put is your parachute. And if you’re holding the stock, $341.67 is your golden entry—just don’t let it drag you into the 200D abyss.