AVGO Options Signal Bullish Breakout Potential: Key Strikes and Trade Setups for 2026

• AVGO trades at $349.99, up 0.17% with a short-term bullish Kline pattern and RSI near oversold levels.
• Options data shows heavy call open interest at $360–$370 and bearish puts at $300–$340, with a put/call ratio of 1.04.
• Recent news includes a $61B VMware acquisition, Q4 earnings beat, and a $5B buyback, but EU fines and regulatory risks linger.

Here’s the core insight: AVGO’s options activity and technicals suggest a high-probability upside breakout scenario, but bearish puts hint at caution. Let’s break it down.Bullish Calls vs. Defensive Puts: What the Options Say

AVGO’s options chain is a mixed bag. This Friday’s top call open interest piles up at $360 (OI: 9,001), $370 (5,587), and $365 (4,381), while puts cluster at $340 (7,975) and $300 (7,718). The put/call ratio of 1.04 (favoring puts) shows some hedging activity, but the heavy call OI at $360+ suggests institutional bets on a near-term push above $351.48 (intraday high).

The next Friday’s options tell a longer-term story: calls at $400 (2,574) and $475 (1,850) indicate bullish positioning for a potential post-earnings rally, while puts at $210 (3,113) signal extreme bearishness—though $340 puts (1,506) offer a more realistic downside hedge.

News Flow: Catalysts and Headwinds

Broadcom’s recent headlines are a double-edged sword. The VMware acquisition and Q4 earnings beat (up 12% YoY) justify the bullish call activity. The $5B buyback and $3.5B DoD contract add tailwinds. But the EU fine ($1.2B) and regulatory scrutiny could cap short-term gains. The IoT spin-off (Q2 2026) might unlock value, but it’s a longer-term play.

Analysts’ mixed signals—upgraded to ‘Outperform’ but with price targets cut to $900—mean the stock is in a tug-of-war between growth optimism and regulatory caution.

Actionable Trade Ideas: Calls, Puts, and Price Levels

1. Options Play: Buy AVGO20260102C360 (this Friday’s $360 call) if AVGO breaks above $351.48. The RSI at 30.21 suggests a rebound is likely. For longer-term bets, AVGO20260109C400 offers leverage if the stock holds above $349.30 (intraday low).
2. Hedge with Puts: AVGO20260102P340 (this Friday’s $340 put) caps downside risk if the EU fine or earnings revisions trigger a pullback.
3. Stock Entry: Consider buying AVGO near $349.30 (support zone) with a target at $360–$365. If it fails to hold, exit below $341.67 (30D support).

Volatility on the Horizon

AVGO is primed for a breakout. The RSI’s oversold reading, bullish Kline pattern, and call-heavy options chain all point to a potential push toward $370+ in early 2026. But the EU fine and regulatory risks mean volatility isn’t one-sided—watch the $340 support level like a hawk.

Bottom line: This is a high-conviction trade for those comfortable with regulatory noise. If the stock clears $351.48, the path to $370 is wide open. If not, the puts at $340 could save your skin. Either way, AVGO’s 2026 story is far from over.