Broadcom (AVGO) Options Signal $350 Pivotal Level: Bull Call Spread Setup Amid AI-Driven Optimism

• Current Price Action: AVGO trades at $347.50, up 1.3% with volume surging to 14M shares.
• Options Imbalance: Put/call open interest ratio at 1.10, but heavy call OI at $350 strikes hints at bullish positioning.
• Analyst Catalyst: Wells Fargo upgrades to $430 PT amid $73B AI order backlog and Google TPU partnership.

The stock is teetering on a knife edge—technical indicators suggest short-term bearishness, but options data and analyst upgrades scream for a breakout above $350. Let’s unpack why this level could be the key battleground."The $350 Strike: A Magnet for Money"

The options market is fixated on $350. For this Friday’s expiration, AVGO20260116C350 (14,176 OI) and AVGO20260116P350 (14,132 OI) dominate the open interest. Next Friday’s chain shows similar concentration, with AVGO20260123C350 (3,073 OI) and AVGO20260123P350 (4,396 OI) as top contenders. This symmetry suggests institutional players are hedging or scaling positions around this level.

Block trades add intrigue: A $350 call block (AVGO20260320C350) and put block (AVGO20260320P350) with $953K and $844K turnover respectively hint at large-scale positioning for March. Think of it like a tug-of-war—every $350 contract is a bet on which way the rope will snap.

"Analyst Upgrades Fuel the Fire"

Wells Fargo’s $430 price target isn’t just a number—it’s a signal. The firm’s revised $100.3B 2026 revenue forecast aligns with the options market’s focus on AI-driven growth. But here’s the catch: Broadcom’s P/E of 71.9x is a double-edged sword. If AI spending slows, the premium valuation could crater. Yet the $73B order backlog and Google partnership give the stock a floor.

"Trade Ideas: Precision Strikes"

For options traders, the AVGO20260123C350 call (next Friday’s expiry) offers a high-conviction play. With the stock trading at $347.50, a $350 call gives you leverage if the price breaks above today’s intraday high of $353.23. Pair it with a bear put spread at $320 (AVGO20260123P320) to cap risk.

Stock buyers should target $348.62–$344.05 support levels. If the price holds, aim for a breakout above $350.36 (30D resistance). A stop-loss below $344.05 would protect against a retest of the 200D MA at $297.15.

"Volatility on the Horizon"

The coming days will test AVGO’s resolve. A close above $353.23 could trigger a rally toward $359.15 (Bollinger Upper Band), while a drop below $344.05 might force a reevaluation of the AI narrative. Either way, the $350 strike is the fulcrum—move it, and you move the market.

Final Take: This isn’t a high-risk gamble—it’s a calculated bet on AI’s next chapter. The options data and analyst upgrades line up, but don’t ignore the 1.10 put/call ratio. Stay nimble, and let the $350 level guide your decisions. After all, in trading, the crowd’s fear is often the best opportunity.