Broadcom (AVGO) Options Signal $350 Bullish Battle: Put/Call Imbalance and Whale Moves Point to Strategic Entry Zones

• Wells Fargo upgrades AVGO to 'Overweight' with $430 target

• Put/call ratio of 1.10 hints at bearish sentiment, but $350 call OI surges

• Block trades at $350 puts and $360 calls suggest big players are hedging or betting on direction

Here’s the thing: AVGO is dancing on a tightrope. On one hand, the options market is loaded with puts—1.10x more open interest than calls. On the other, the stock’s 0.75% intraday pop and Wells Fargo’s bullish upgrade clash with lingering bearish technicals. Let’s break it down.

The $350 Bull/Bear Crossroads: What Options Reveal About Market Sentiment

The options chain is a chessboard. This Friday’s top OTM calls are clustered at $350–$410, while puts dominate at $250–$320. That’s a classic bearish setup—investors are hedging against a drop. But here’s the twist: AVGO20260123C350 (next Friday’s $350 call) has 3,073 open contracts, the highest of any next-week strike. Why? Because $350 is a psychological line. If AVGO breaks above its 30D support/resistance range (348.62–350.37), those calls could ignite.

Block trades add intrigue. A $350 put block (AVGO20260220P350) sold 800 contracts in late February, while a $360 call block (AVGO20260220C360) saw 800 contracts traded. Big players are either hedging a short-term dip or prepping for a rally. The key? Watch the $344.05 intraday low. If it holds, the 30D MA at $356.66 becomes a target.

Wells Fargo’s Upgrade vs. The Bearish Put/Call Ratio: A Tug-of-War

Wells Fargo’s $430 price target is a shot of adrenaline. They’re betting on AI-driven growth—$73B in orders and a Google TPU partnership. But the put/call ratio of 1.10 (bearish) and CEO Hock Tan’s $185M in insider sales tell a different story. It’s a tug-of-war between long-term optimism and short-term caution.

Institutional moves back this up. Vanguard and UBS AM are piling in, but Capital World Investors is pulling back. The average price target of $456 implies 33% upside, but the stock’s 1.51% 10-day drop shows nerves. This is a stock with a strong Piotroski score (8) but mixed investor sentiment.

Trade Ideas: Calls for the Brave, Puts for the Cautious

If you’re bullish, AVGO20260123C350 (next Friday’s $350 call) is your play. The stock needs to break above $348.62 (30D support) to justify the premium. Entry: $345.60 (current price). Target: $356.66 (30D MA). Stop-loss: $344.05 (Bollinger Band low).

Bearish? AVGO20260123P320 (next Friday’s $320 put) offers downside protection. The stock’s 44.56 RSI isn’t screaming oversold, but the MACD histogram (-4.53) and 200D MA at $297.15 mean a drop to $328.87 (lower Bollinger Band) could accelerate. Entry: $343.02 (previous close). Target: $320. Stop-loss: $348.62.

Volatility on the Horizon: The $350 Line Will Decide AVGO’s Fate

The next 72 hours are critical. If AVGO cracks $350.37 (30D resistance), the 30D MA at $356.66 becomes a magnet. But if it falters, the 200D MA at $297.15 looms. The block trades at $350 and $360 suggest smart money is positioning for either outcome. This isn’t a coin toss—it’s a calculated bet on whether AI optimism or China’s VMware ban wins the day.

Bottom line: AVGO is a high-stakes poker game. The options market is bearish, but the fundamentals are bullish. Your move? Ride the $350 call if you’re confident in the AI story—or play it safe with a $320 put. Either way, the next few days will tell the tale.