AVGO Options Signal Bullish Bias at $350 Strike: Here’s How to Play the Breakout Amid Regulatory Risks

• Q4 2025 revenue beat by $500M, Q1 guidance raised to $9.5B
• OTM call open interest surges at $350 strike (20,078 contracts) for Friday expiry
• Put/call ratio for open interest at 1.09 hints at cautious bearishness

Broadcom’s options market is whispering a clear message: traders are pricing in a potential breakout above $350, but regulatory clouds linger. With the stock trading at $351.03—up 1.75% from the open—technical indicators and options positioning suggest a pivotal moment. Let’s break down what’s really happening here.

The $350 Strike Is a Magnet for Big Money

Looking at this Friday’s options chain, the $350 call (AVGO20260116C350) dominates with 20,078 open contracts. That’s not just noise—it’s a liquidity hotspot. Combine that with the $350 call’s 2,199 open interest for next Friday, and you’ve got a strike price where smart money is bracing for a potential rally. But don’t ignore the puts: the $320 put (AVGO20260116P320) has 11,670 open contracts, hinting some players are hedging against a drop below key support.

The block trades also tell a story. A 1,000-lot of AVGO20260320C370 and 500-lot of AVGO20260320C340 suggest institutional players are locking in March expiry calls. Why? The March 370 call is 19% out of the money today—ideal for capitalizing on a post-earnings pop or a regulatory resolution that clears the air on the EU antitrust probe.

News Flow: Growth vs. Red Tape

Broadcom’s Q4 results were a rocket boost—$9.2B revenue, 5G chipset pre-orders, and a $5B buyback. But the EU investigation into its SecureNet acquisition is a speed bump. Here’s the twist: the market isn’t pricing in a total collapse. The $350 call frenzy suggests investors believe the company’s AI-driven growth (5G, cybersecurity, NVIDIA partnership) will outpace regulatory headwinds. However, the $320 put open interest warns that a 10% drop—should the EU demand asset sales—could trigger panic.

Trade Ideas: Calls for the Breakout, Puts for the Hedge

For the aggressive: Buy AVGO20260116C350 (Friday expiry) if the stock breaks above $352.33 (intraday high). Target $380, where the $380 call (AVGO20260116C380) has 13,462 open contracts as a liquidity ceiling. Stop below $348.63 (30D support).

For the cautious: Buy AVGO20260116P320 to hedge against a regulatory selloff. Pair it with a long AVGO20260123C355 (next Friday expiry) for a collar strategy. The 355 call is 1.4% out of the money but sits near the 30D moving average (346.89), offering a balanced risk/reward.

Stock traders: Consider entering near $348.63 if the 30D support holds. Target $352.33 (intraday high) first, then push toward $360 (where 14,881 calls are waiting). Exit below $340.95 (intraday low) to protect gains.

Volatility on the Horizon

Broadcom is dancing on a tightrope—strong fundamentals vs. regulatory uncertainty. The options market is pricing in a 10–15% move by Friday, but the real fireworks could come in March as the EU investigation unfolds. For now, the $350 strike is the fulcrum. If it holds, this could be the start of a multi-week rally. If it breaks, the puts at $320 will light up like flares in a storm. Stay nimble, and let the data guide your next move.