AVGO Volatility Plays: Calls at $350, Puts at $275 Signal Mixed Sentiment — Is March 27 the Turning Point?

• Broadcom (AVGO) opens bearish with a -2.1% drop, currently trading at $313.00 after hitting an intraday low of $312.35.
• Options open interest shows a slight put/call bias (1.16), with heavy call interest at $350 and puts at $275 ahead of Friday’s expiry.
• Recent news includes strong Q1 earnings, a new AI chip partnership with Meta, and analyst upgrades — but also regulatory pushback from the EU.

The stock is pulling back but remains well above its 200-day MA at $324.91 and below the 100-day at $346.47 — a classic case of a stock in a wide trading range, with short-term bearish momentum. But here's the twist: options sentiment isn’t telling a simple bearish story.

Bullish Pockets in a Bearish Move

Looking at this Friday’s options chain, the top OTM calls are concentrated at $330 to $420, with $350 and $400 seeing heavy open interest (13,863 and 16,799 respectively). Puts are more heavily skewed, with the $275 strike at 28,531 OI — more than double the next put. That’s not a sign of a freefall — it’s more like a hedge or a readiness for a sharp pullback.

What stands out are the block trades. The biggest, AVGO20260918P320, moved 500 puts for $2.1 million, suggesting someone is hedging a large position into September. Also notable is the 2,000-lot AVGO20260330P300 trade. These are not retail plays — they’re strategic, likely from large investors or funds prepping for either a short-term dip or a regulatory hit.

News: Growth Outpaces Concerns, But the EU Is Watching

The news flow is mostly bullish. Broadcom just beat Q1 estimates with $2.05 EPS and $19.3B in revenue. Analysts are boosting price targets to $485 or $500, and earnings forecasts are rising fast — $2.35 for this quarter, $16.72 for next. Add in a major AI chip deal with Meta and the recent shipment of the first quantum-safe encryption solution — and you have a company that’s clearly at the forefront of tech innovation.

But the European cloud group pushing back against VMware’s CSP program changes adds a cloud of regulatory risk. While it’s not a dealbreaker yet, it’s a reminder that institutional confidence is strong, but not unshakable.

Trading Setup: Calls at $350, Puts at $275, and a Stock Play at $312

If you’re going long, look at the $350 call (AVGO20260327C350) — it’s got strong OI and liquidity. If you’re bearish, the $275 put (AVGO20260327P275) is a high-interest level with 17,351 open contracts. Either way, both strikes are key inflection points where we could see a reversal or a breakout by Friday.

For stock traders: consider a long entry near $312, which is just above the intraday low and approaching the lower Bollinger Band at $308.63. A move above $323 would signal a recovery in the short-term trend, while a break below $310 would confirm a bearish shift. Resistance lies at $332–$333, where 30-day support/resistance lines converge.

Volatility on the Horizon

The coming week is critical. Broadcom is sitting on a knife’s edge — strong earnings, bullish analyst upgrades, and big partnerships on one side, and regulatory pushback and a declining stock price on the other. Options sentiment shows a mix of caution and optimism, and the block trades suggest money is being moved, not just placed. The March 27 options expiry could be the catalyst that tips the balance — either way, the data is clearly pointing to a setup worth watching closely.