AVGO Options Signal Bullish Bias at $330–$350: How to Play the AI Chip Giant’s Rebound

• Broadcom’s (AVGO) options market shows heavy call open interest at $330 and $350 strikes ahead of Friday’s expiry.
• Analysts from Morgan Stanley and Morningstar have raised price targets to $462–$480, citing AI chip growth and VMware synergies.
• Technical indicators suggest a potential bounce off the $322.87 Bollinger Band support, but a bearish engulfing candle warns of near-term risks.

Here’s the thing: Broadcom’s stock is caught in a tug-of-war between bullish fundamentals and bearish technicals. The options market is leaning toward a rebound, but traders need to tread carefully. Let’s break it down.

Where Bulls and Bears Are Betting: The $330–$350 Struggle

The options data tells a story. For this Friday’s expiry, the top call options are clustered at $330 (OI: 20,723) and $350 (OI: 23,835), while puts at $310 (OI: 17,355) and $300 (OI: 15,988) show defensive positioning. The put/call ratio for open interest is 0.94, a near-even split that suggests traders are hedging both directions—but with a slight edge to calls.

This isn’t random. The $330–$350 range represents a psychological battleground. If AVGO breaks above $335.84 (intraday high), those calls could ignite. But the bearish engulfing pattern on the candlestick chart and RSI at 26.15 (oversold territory) hint at a possible rebound. The danger? A breakdown below $323.65 (intraday low) could trigger the puts at $310 and $300. No major block trades to watch, so this is retail and institutional money fighting it out.

Why Analysts Are Bullish—And Why You Should Care

The news flow is loud and clear: Morgan Stanley and Morningstar aren’t just optimistic—they’re aggressive. Price targets of $462–$480 imply 38–47% upside from current levels. The $11 billion AI chip order from Anthropic and VMware’s hybrid-cloud push are real tailwinds. But here’s the catch: insiders are selling, and gross margin concerns linger.

This creates a paradox. The fundamentals scream buy, but the technicals and sentiment are mixed. Retail traders might be buying calls at $330–$350, betting on the AI narrative, while institutions are hedging with puts. The key is whether the stock can hold its 200-day moving average ($338.30) without a violent breakdown.

Trade Ideas: Calls for the Rebound, Puts for the Safety Net

For options traders:

• Bullish Play: Buy AVGO20251219C330 (this Friday’s $330 call) if the stock rebounds above $328.15. The RSI at 26 suggests a bounce is likely, and the $330 strike is just below the 30-day support at $339.93.
• Bearish Hedge: Buy AVGO20251226P310 (next Friday’s $310 put) if the stock dips below $323.65. The lower Bollinger Band at $322.87 is a critical level—break that, and the puts at $310 could see action.

For stock traders:

• Entry: Consider buying AVGO near $322.87 if it holds the lower Bollinger Band. Set a stop-loss below $320 (next support).
• Target: Aim for $341.67 (30-day resistance) or $343.63 (200-day range). A break above $335.84 (intraday high) would validate the bullish case.

Volatility on the Horizon: What to Watch

The next 48 hours will be critical. If AVGO holds above $323.65 and closes above $328.15, the $330–$350 calls could take off. But a close below $322.87 would validate the bearish engulfing pattern, sending the stock toward $310–$300. Either way, the options market is pricing in a volatile finish.

Bottom line: This is a high-conviction trade for AI believers. The risks are real—margins, competition, and insider selling—but the rewards are bigger. If you’re in, play it smart. If you’re out, keep that safety net with those $310 puts. The market’s about to pick a direction.