AVGO Options Signal a Battle at $320 as Bulls and Bears Prepare for a Friday Showdown – Here’s How to Play It

• Intraday price action shows AVGO at $324.92, up 0.86% from the open but still below the 30D moving average of $329.38.

• The options market is heavy on puts at $275 and calls at $400, with a put/call ratio of 1.14 in open interest suggesting bearish positioning.

• A block trade of 1,000 puts at the $305 strike was seen today, indicating some big players are hedging or betting on a short-term drop.

It’s a curious time for Broadcom (AVGO). The stock has been range-bound over the long term, but it’s been caught in a bearish nudge over the short term. Traders are watching the $320 level like it’s the final round of a chess match — and today’s options flow tells a story of both sides preparing their moves.

The Options Imbalance at $320 and $400 Suggests a Ranging Battle Is Heating Up

Looking at the options chain for this Friday’s expiration, the top 5 call options with the most open interest are at strikes of $340 to $420. On the put side, the highest OI is at the $275 strike, with a full 28,437 puts.

This imbalance signals a bearish slant in the market — more capital is being allocated to downside protection. But the call options at $340 to $350 suggest some traders are still positioning for a rebound off support. The key takeaway? The market is expecting a tight fight near $320 (the intraday low today), with a potential overshoot to either side.

And don’t miss the block trade at AVGO20260316P305: 1,000 puts sold for $7,000. This isn’t a random move — it’s a signal that someone with skin in the game is either hedging a near-term position or betting on a drop below $305. That could act as a catalyst for short-term volatility.

The News Is Quiet, So the Options Are Speaking Louder Than Ever

There’s no major news from Broadcom in the last 3-4 days. That’s rare for a stock of this size. But when the fundamentals are silent, the options take center stage.

In this case, the bearish open interest and the block trade indicate that traders are pricing in a short-term pullback — even if earnings or macro news haven’t moved the needle. This is where perception becomes reality. If enough people are shorting or hedging with puts, the stock might dip just from the weight of those expectations.

Here Are 3 Specific Ways to Position for This Volatility – Today

1. Short the $320 Put if You’re a Bull – With the stock trading just above that level, the 200D support zone (340.08–343.55) is still a long way up. If you believe the $320 level will hold, consider shorting the $320 puts this Friday (AVGO20260320P320) at a tight bid/ask. A pop back above $325 could force a put unwind.

1. Buy the $340 Call as a Play on a Bounce – The $340 strike has 14,536 open calls (this Friday). It’s a key level where a rebound could take place. If the stock holds above $320, the $340 call (AVGO20260320C340) could offer a leveraged play on a potential 5% move.

1. Use a Put Spread to Protect Long Positions – If you’re holding the stock or bullish options, consider a put spread with the $300 and $320 puts (next Friday: AVGO20260327P300 and AVGO20260327P320). This would cap your downside risk in case the block trade moves the needle.

Volatility on the Horizon – Be Ready for a Quick Reversal

AVGO is at a pivot moment. The stock is perched on a tight balance between a short-term bearish trend and a long-term consolidation pattern. The options market is betting on a short-term drop, but if the bulls hold the $320 line, we could see a sharp reversal.

Keep an eye on this Friday’s expiration — that’s when the market will take a breath and decide whether to continue the bearish trend or shift back to a bullish bias. And if the $320 level breaks, the path to $300 becomes a real possibility.

Right now, the best strategy is to stay close to the $320 level. If it holds, buy the bounce. If it breaks, get ready to short the panic. The options are already telling us the story — it’s up to us to play the next move.