AVGO Volatility Playbook: Calls at $360, Puts at $320 Signal Battle for $350

• Broadcom CEO sold 70k shares at $347.30, sparking short-term jitters
• $6.75B AI debt raise and $0.65 dividend boost signal long-term ambition
• Put/call ratio of 1.09 hints at cautious optimism, with heavy OI at $360 calls and $320 puts

Here’s the thing: AVGO is dancing on a tightrope. The stock’s 1.7% intraday pop to $352.33 clashes with a short-term bearish Kline pattern. But the options market? It’s telling a different story. Calls at $360 ($14.8k OI) and puts at $320 ($6.45k OI) are like magnets pulling the stock in both directions. If you’re betting on a breakout or breakdown, today’s your window.

The Options Crossroads: Calls vs. Puts at Key Strikes

Let’s unpack the OTM options. The top call OI ($360, $370, $380) suggests traders are hedging for a rally above $350. But don’t sleep on the puts: $320 and $310 have 6.4k and 18k OI respectively. That’s a bearish counterweight. The put/call ratio of 1.09 (for open interest) isn’t screaming “crash coming,” but it’s not bullish either. It’s a standoff.

And then there’s the block trading. A 500-lot buy of AVGO20260116C350 (expiring this Friday) at $345000 shows someone’s confident in a near-term pop. Meanwhile, the March 2026 $370 and $340 calls (each with $2M+ turnover) hint at longer-term positioning. If the stock cracks $352.33, those March calls could light a fire under the price.

News That Could Tilt the Scales

Broadcom’s recent headlines are a mixed bag. The CEO’s $24M share sale? That’s a red flag for short-term sentiment. But the AI Wi-Fi 8 launch and $6.75B debt raise scream “long-term bet.” Cathie Wood’s ARK Invest piling in with a new stake adds institutional credibility. Here’s the rub: insider selling and margin pressures could cap near-term gains, but the AI narrative is a rocket if execution checks out.

Actionable Trades: Calls, Puts, and Precision Entries

• For Calls: Buy AVGO20260123C360 (next Friday expiry) if AVGO breaks $352.33. Why? The $360 strike has 1.7k OI and sits just above the 30D support ($348.63–$350.37). A close above $352.33 could trigger a rally toward the Bollinger Upper Band ($378.99).
• For Puts: Buy AVGO20260123P320 if AVGO dips below $340.95. The $320 strike has 6.4k OI and aligns with the 200D support ($338.30–$343.63). A breakdown here could test the Lower Band ($314.80).
• Stock Entry: Buy AVGO near $348.63 (30D support) with a stop below $340.95. Target $370 if the 30D MA (362.61) holds; exit at $355 if it fails.

Volatility on the Horizon: Navigating AVGO’s Crossroads

This is the moment. The stock is squeezed between a short-term bearish trend and a long-term range. The options market is pricing in a potential $350 pivot point—break above it, and the AI narrative takes over. Drop below, and the 200D MA ($293.64) becomes a ghost story. Either way, the next 48 hours (with expirations on 1/16) could decide the direction. Keep an eye on the $360 calls and $320 puts: they’re the canaries in the coal mine.

One last thought: The CEO’s sale might be a red herring. Big names often trim positions for personal reasons. But paired with the block trades and AI hype, it’s a reminder—this stock isn’t just about numbers. It’s about narratives. And right now, the market is betting on both.