AVGO Options Signal $380 Call Battle: UBS' $475 Target vs. $300 Put Defense – Here’s How to Play the Rebound

• Broadcom (AVGO) plunges 4.9% to $342.19 amid AI margin fears, but UBS raises price target to $475.
• Options data shows heavy call open interest at $380 and put OI at $300, signaling a tug-of-war between bulls and bears.
• Technical indicators hint at a short-term bearish trend, but long-term fundamentals remain bullish on AI growth.

Here’s the thing: AVGO’s options market is screaming about a critical price war. Call and put open interest are nearly balanced, but the strikes at $380 and $300 are where the action is. This isn’t just noise—it’s a sign that traders are bracing for a rebound or a breakdown. And with UBS’ $475 target in play, the next few days could be pivotal.

The $380 Call vs. $300 Put Showdown: What Traders Are Betting On

Let’s break down the options data. This Friday’s top call open interest is clustered at $380 (OI: 19,010), $370 (17,459), and $350 (14,592). Puts are heavy at $300 (13,119), $310 (9,986), and $320 (9,605). The put/call ratio for open interest is 1.02, meaning bears and bulls are equally active. But here’s the twist: the $380 call is the most watched strike. If AVGO breaks above $341.90 (intraday low), those calls could ignite. Conversely, a drop below $339.98 (30D support) might trigger a rush to the $300 puts. Block trading is quiet, so no whale moves to worry about—this is retail and institutional money fighting it out.

Why the AI Headlines Matter More Than They Appear

Broadcom’s 11.4% post-earnings drop on Dec 12 was brutal, but the story isn’t all bad. Management warned of 100-basis-point margin compression in Q1 2026, but the company’s free cash flow ($7.5B) and AI backlog ($73B) are staggering. UBS’ $475 target isn’t just optimism—it’s math. The problem? Investors are pricing in a “bubble” fear. The good news? AI semiconductor revenue is up 76% YoY, and OpenAI’s new rack orders are a real-world catalyst. The challenge is balancing near-term margin pain with long-term growth. If the market forgets the $27B in software revenue (up 26% YoY), AVGO could surprise to the upside.

Actionable Trades: Calls for the Rebound, Puts for the Panic

For options traders, the AVGO20251219C380 call (expiring this Friday) is a high-conviction play. If AVGO rebounds above $341.90, this strike could see a pop. For downside protection, the AVGO20251219P300 put offers a floor if the AI “bubble” narrative intensifies. For stock players, consider an entry near $341.90 (intraday low) with a target at $380. A break below $339.98 (30D support) would signal a deeper pullback, making the AVGO20251226P310 put (next Friday’s expiry) a safer bet. Short-term bears could sell the AVGO20251219C350 call if AVGO fails to hold $342.19.

Volatility on the Horizon: Bulls and Bears in a Tightrope Walk

The next 72 hours will test AVGO’s resolve. A close above $361.89 (today’s open) could reignite the long-term bullish trend, while a sustained drop below $326.92 (lower Bollinger Band) would validate the bear case. The key is patience: AVGO’s 50% YTD gain suggests this is a stock that thrives on volatility. For now, the options market is hedging both ways—but the $475 target isn’t a fantasy. If AI demand holds, the $380 call could be the spark that lights a fire. Just don’t bet the farm—this is a high-stakes poker game.