AVGO’s Options Signal a High-Stakes $320–$370 Battle: How to Position for Volatility on Dec 19–26

• AVGO plunges 4.58% to $325.67, breaking below its 30D MA of $367.98 and testing the lower Bollinger Band at $326.13
• Options market shows heavy call open interest at $330 and $350 strikes, but puts dominate at $300–$310
• RSI at 35.16 (oversold) and MACD divergence hint at potential short-term rebound

Here’s the thing: AVGO’s options activity and technicals are painting a picture of a stock at a crossroads. The price drop has created a tug-of-war between long-term bulls (200D MA at $281.43) and short-term bears. But the options market isn’t screaming panic—it’s hedging its bets. Let’s break down what that means for traders.

The $330 Call Wall and $310 Put Floor: A Volatility Sandwich

Looking at this Friday’s options chain, the call open interest peaks at $330 (OI: 19,350) and $350 (OI: 16,804), while puts pile up at $300 (OI: 14,483) and $310 (OI: 13,734). This isn’t just noise—it’s a setup. The heavy call interest suggests some players are bracing for a rebound off the $326 Bollinger Band floor. Meanwhile, the puts at $300–$310 act like a safety net for those worried about a breakdown below key support at $338.30.

But here’s the catch: The put/call ratio for open interest is nearly balanced at 0.97. That means no overwhelming bearish or bullish bias. It’s a waiting game. And with no block trades to tip the scales, the next move will likely come from price action itself.

No News, But the Market Is Talking

There’s no recent Broadcom-specific news to sway sentiment, which means the options activity is the main story. In a vacuum like this, technical levels become king. The RSI hovering near oversold and the MACD histogram’s bearish divergence (2.14 vs. 8.14 signal line) could spark a rebound. But don’t ignore the 200D MA at $338.30—it’s a stubborn support level that’s held for years. A close below $320 would test that resolve.

Trade Ideas: Calls for Bounces, Puts for Protection

For options players, the AVGO20251219C330 call (expiring Dec 19) is a high-conviction bet if AVGO rebounds off $326. With RSI in oversold territory, a bounce to $340–$350 could make this $330 call profitable in three days. For downside hedges, the AVGO20251219P310 put offers a floor if the stock cracks $320. It’s also a cheaper premium than deeper puts given the balanced put/call ratio.

Stock traders could consider entries near $326 if the Bollinger Band low holds. A breakout above $339.81 (30D support/resistance) would validate the long-term bulls. Set a stop below $320 to guard against a breakdown. For the bold, a mean-reversion trade between $320–$340 could play out over the next two weeks.

Volatility on the Horizon: A Setup for Range-Bound Action

The next seven days will test AVGO’s mettle. The options market isn’t predicting a crash or a rally—it’s pricing in a tight range battle between $320 and $370. If the stock holds above $326, the 30D MA at $368 could reassert itself. But a close below $320 would force a reevaluation of that long-term bullish 200D trend. Either way, this is a stock watching its own reflection in the technical glass—and traders have a front-row seat.