AVGO Options Signal Bullish Setup at $350–$380: Here’s How to Position for Q4 Momentum

• Broadcom (AVGO) reports record Q4 revenue of $9.2B, beating estimates by 8%
• Options data shows heavy call open interest at $350–$380, with puts clustering at $300–$320
• Stock trades near 52-week low of $326.92 but faces critical support/resistance at $339–$343

Here’s the takeaway: AVGO’s options market is quietly bullish on a rebound above $350, but technicals warn of a short-term bearish trap. The stock’s 2.9% drop today—despite strong earnings—hints at profit-taking, but the long-term bull case remains intact. Let’s break down what’s really happening.

The Options Playbook: Calls at $350–$380 vs Puts at $300–$320

The options chain tells a story of cautious optimism. For this Friday’s expiration, call open interest spikes at $350 (14,592 contracts) and $370 (17,459), while puts dominate at $300 (13,119) and $310 (9,986). This suggests two camps:

• Bullish bets are stacking up for a rebound above $350, likely targeting the 30D support/resistance zone ($339.98–$341.44) as a catalyst.
• Bearish hedges are buying puts at $300–$320, pricing in a worst-case scenario where the stock collapses below its 200D MA ($279.96).

The near-1:1 put/call ratio (1.02) for open interest means no clear consensus—yet. But the heavy call OI at $350–$380 implies smart money is positioning for a bounce if the stock holds above $339.98.

News-Driven Narrative: Earnings vs Execution Risks

Broadcom’s Q4 results are stellar: $9.2B revenue, $4.15 EPS, and a $5B buyback. But the market is parsing mixed signals. The $1.2B AI acquisition and Microsoft partnership are long-term wins, but the $300M restructuring plan and 5% workforce cut by Q2 2026 raise near-term execution risks.

Investors are hedging their bets. The call activity at $350–$380 aligns with the company’s raised $37.5B revenue guidance, while the put interest at $300–$320 reflects fears of a post-earnings selloff. The key question: Will the stock’s 18% cybersecurity growth offset the restructuring headwinds?

Actionable Trade Ideas: Calls, Puts, and Price Levels

For options traders, the most compelling plays are:

• AVGO20251219C350 (this Friday’s $350 call): Buy if AVGO rebounds above $348.40 (intraday low). Target $365–$370 if the 30D support holds.
• AVGO20251226C380 (next Friday’s $380 call): A longer-term bet if the stock breaks above $355. Use the $341.44 support as a stop-loss.
• AVGO20251219P310 (this Friday’s $310 put): Hedge against a drop below $326.92 (lower Bollinger Band).

For stock traders, consider:

• Entry near $339.98 if AVGO holds above $338.2996 (200D support/resistance). Target $365–$375 if the 30D MA ($369.68) acts as a floor.
• Shorting near $348.40 if the stock breaks below $341.44. Exit at $335 or $326.92.

Volatility on the Horizon: Balancing Bullish Catalysts and Near-Term Risks

The next 72 hours will test AVGO’s resolve. A close above $355 could reignite the long-term bull case, while a drop below $339.98 might trigger panic selling. The options market is pricing for both outcomes—your job is to pick your side.

Remember: This is a stock with $9.2B in quarterly revenue but also a $300M restructuring plan. The AI acquisition and Microsoft partnership are tailwinds, but execution risks linger. Stay nimble, and let the $350–$380 call strikes and $310–$320 puts guide your decisions.

One last thought: The RSI at 55.79 isn’t screaming overbought or oversold. This is a stock in transition. Your edge? Watching how the $341.44 support/resistance level holds up tomorrow. If it does, the bulls get a second wind. If not… well, the puts are there for a reason.