Broadcom Options Squeeze at $345–$265: Short-Term Bearish Play with Long-Term Range-Bound Setup

• Put open interest has surged past calls by 20%, with heavy bearish positioning at $265 and $270 ahead of Friday’s expiry.
• Broadcom’s stock has dipped 1.5% from its open amid a short-term bearish Kline pattern and negative MACD divergence.
• Options traders are eyeing the $340–$345 call strikes and $265–$270 put strikes as pivotal battlegrounds in a fading bull case.
• Despite short-term weakness, long-term trend lines and strong earnings history suggest range-bound trading ahead.

Here's the thing: the options market is whispering clearly—Broadcom is under pressure. With put open interest outpacing calls by nearly 20% and bearish positioning stacking up near the $265 level, it’s time to take stock. The short-term trend is bearish, and right now, it’s leaning toward downside risk with a long-term ceiling in place.

Puts Dominate, Calls Fade—What Traders Are Bidding On

Let’s look at what the options market is saying. For Friday’s expiry, the top OTM puts are maxed out near $265 (OI: 16,965), with the $270 strike close behind (OI: 14,138). That’s a bearish signal right there—someone is betting big on a sharp drop, maybe from a breakdown of key support or a surprise earnings miss.

On the call side, $340 and $345 still have some attention (OI: 4,129 and 7,062), but the interest is thinning fast. The bullish case is fading. This isn’t just a shift—it’s a shift in confidence. If the stock can’t hold above 320, these calls may be toast.

Block trading is quiet today, which means no whale moves are skewing the action. That makes the options data even more telling. This is organic bearish pressure, not forced selling.

News Is Strong, But Market Sentiment Is Cautious

Broadcom’s recent headlines are glowing. It closed the $61 billion VMware deal, reported record quarterly earnings, and announced a $2 billion share repurchase program. It’s got strong momentum in AI chips, cybersecurity, and cloud infrastructure—everything a tech investor could want.

But here’s the catch: when a stock has been rising fast and hitting all-time highs, a bearish pullback is not just expected—it’s almost a necessity for the stock to consolidate. The market is taking a breather before pushing higher. The news is still bullish, but the options market is telling us that traders are hedging, not betting all-in on a new high.

This is like a climber taking a short rest at a ledge before moving upward. The ledge is the 325.77 Bollinger Middle Band. If it holds, the next leg up could start again. If it breaks, the next stop is the 305.92 lower band—where the puts are waiting.

Trade Ideas: Short-Term Put Plays and Long-Term Call Bets

Let’s get tactical. For the short term, if you’re bearish or hedging, consider the AVGO20260327P265 put option expiring Friday. With an open interest of 16,965 and a strike well below the current price of 317.53, this is a big bet. If the stock breaks 320 and drifts toward 315 or below, the 265 put has a clear path to profit.

For next week’s expiry, the AVGO20260403P280 (OI: 3,055) and AVGO20260403P287.5 (OI: 2,885) are also on the radar—good for a slightly more conservative bearish trade. These could work as a hedge if you’re holding the stock or bullish calls but want to protect against a surprise dip.

On the call side, if you think the stock is going to stabilize or rebound—especially near the 325.77 middle band—the AVGO20260403C325 (OI: 1,504) is a low-cost call with decent reward if the stock holds and rebounds. The 330 strike (AVGO20260403C330) is another option for a more aggressive bull case.

For stock traders, consider entering a long position if support at $320 holds. A bounce off that level could push the stock toward the $325–$330 range. A break below 320 into the $314–$315 level would be more bearish, and that’s where the puts really come into play.

Volatility on the Horizon

Broadcom isn’t going down the toilet. The long-term trend is sideways, and with its strong fundamentals and recent buybacks, it’s likely to find a floor around $305–$310 and a ceiling around $340–$345.

But for now, the short-term is a test. The key is whether this pullback is a quick dip or a deeper correction. The options market is leaning bearish—but not panic bearish. It’s watching. It’s waiting. And if the stock breaks support, the puts will likely light up like fireworks.

So what’s the takeaway? If you’re in the stock or bullish calls, protect with the 265 or 270 puts. If you’re bearish, go short with the 265 put. And if you’re neutral, wait for the stock to find a new base between 320 and 325 before making a move. The range is coming back into focus—and that’s where the next setup will be born.