AVGO Options Signal Bearish Sentiment as Put Open Interest Dominates — Target 315-300 for a Strategic Short Setup

• Put open interest is up by nearly 16% over calls on the AVGO options chain.

• Bollinger Bands show strong support at $308.63 and resistance at $345.92.

• Block trades hint at large positions being locked in ahead of mid-2026.

Broadcom’s stock has swung back into bearish territory today after a volatile open, with a 1.23% drop to $315.89. The broader technical picture is mixed: the stock is in a long-term range, but the MACD and RSI signal short-term bearish momentum. Right now, the options market is sending a clear message — and it’s not bullish. Put open interest is up, and the top strike levels show a preference for downside protection, especially in the $270–$300 range.

Puts Outnumber Calls by a Comfortable Margin, Pointing to Risk-Off Behavior

Take a look at the options chain for AVGO — the top OTM puts for this Friday’s expiration ($275, $300, $310) are all showing heavy open interest, with the $275 strike leading the way at 28,531 contracts. That’s nearly double the volume at the most bullish call strike ($330). The put/call open interest ratio is sitting at 1.16, which means investors are more focused on downside risk than potential upside. This kind of imbalance is usually seen in periods of earnings uncertainty or earnings-related volatility, but there’s no major news driving this. It's pure options-driven sentiment at the moment.

And it’s not just the short-term options — the next Friday’s puts also show a similar skew. The $287.5 strike has 17,351 open contracts, another sign that large players are hedging against a potential breakdown below the $310 level. The block trades we see on the options chain only reinforce this. A 500-lot put trade at the AVGO20260918P320 put, with a turnover of $2.1 million, suggests that someone is locking in a protective position for mid-September. That's a long way out — but it's a big move.

No New News, But the Market is Already Pricing in Weakness

The lack of recent news is actually a red flag. If the stock is trading down despite no earnings, product updates, or regulatory issues, it’s likely being driven by internal options activity or broader market rotation. No new headlines mean that the recent move is more of a continuation than a reaction. That makes it all the more important to identify the key levels where support and resistance might break next.

Trade Ideas: Shorts at $315, Puts at $300 and $310 for the Next 7 Days

Here’s what I’m looking at:

• Short the stock: If price closes below $310 today, consider initiating a short position with a stop at $315. Target your exit at $300, which lines up with the lower Bollinger Band and the 200D moving average. If the stock breaks back up above $322.5, exit immediately.
• Options plays: The AVGO20260327P310 and AVGO20260327P300 puts are the most attractive next-Friday contracts, given their liquidity and positioning just below current price. Both are likely to appreciate if the stock breaks $310 in the next few days. If you want a longer-term bet, the AVGO20260918P320 is a high-impact trade for the fall — especially if the block traders are already in position.

Volatility on the Horizon — Keep an Eye on the 322.5 Support Level

To recap: the stock is in bearish momentum, and the options market is clearly leaning downside. The key levels to watch are $310 and $322.5 — one for short entries, the other as a critical support for any potential rebound. If price holds above $322.5 through Friday, the bearish pressure may ease. But if it falls below $308.63 (the lower Bollinger Band), this could signal a deeper correction. In either case, the open interest data gives us a good read on where the big money is moving. And right now, it’s going down.