AVGO Options Signal $400 Bull Call Battle as Earnings Loom: Here’s How to Play the Volatility

• AVGO plunges 3.87% to $396.99, trading below its 30D moving average of $369.55 but clinging to long-term bullish trends.
• Options market shows heavy call open interest at $400 (8,921 contracts) for next Friday, vs. puts at $300 (9,958), hinting at a tug-of-war around key levels.
• Analysts target $440–$535 as post-earnings goals, but insider selling and a 72.2 RSI suggest caution ahead of the Dec 11 report.

**The stock isn’t screaming bullish or bearish—it’s whispering uncertainty. But that’s where the best setups hide.**

The $400 Call Wall and the $300 Put Floor: A Sentiment Tightrope

Let’s start with the options data. This Friday’s $420 call (OI: 5,865) and next Friday’s $400 call (OI: 8,921) form a striking pattern. Think of it like a magnet: big money is betting AVGO will hover near $400, not surge past it. Meanwhile, the $300 put (OI: 9,958) acts as a floor—options players are hedging a 20% drop. The put/call ratio of 1.04 for open interest leans slightly bearish, but the sheer volume in calls (1.07M) vs. puts (1.12M) shows buyers aren’t ceding control.

But here’s the twist: no block trades. No whale-sized bets to tip the scales. This is a crowd-sourced battle, not a top-down move. That means retail and institutional players are aligned—for now.

Earnings Hype vs. Insider Caution: Can AVGO Deliver?

The news flow is a mixed bag. HSBC and Rosenblatt are all-in on AVGO’s AI chip story, pushing $440–$535 price targets. But insiders sold $376M of stock over the past year, with $50M in the last three months. That’s not a red flag—it’s a yellow flag. Management might be hedging their own optimism.

Combine this with Broadcom’s $1.9T market cap and 79% historical post-earnings outperformance, and you get a stock that’s supposed to crush expectations. But the market isn’t pricing in a home run—it’s buying insurance. The $380 put (OI: 4,537) and $400 call (OI: 5,350) for this Friday suggest traders expect a tight range until the earnings report drops.

Trade Ideas: Calls for Conviction, Puts for Protection

If you’re bullish but cautious, the AVGO20251219C400 call (next Friday’s $400 strike) is your best bet. With 8,921 contracts in open interest, it’s the most liquid and least volatile of the big calls. Enter if AVGO holds above $394 (today’s intraday low) and targets a close above $405. Stop below $385 to cut losses.

For downside protection, consider a bear put spread: buy the AVGO20251219P380 ($380 put, OI: 4,537) and sell the AVGO20251219P320 ($320 put, OI: 4,829). This caps your risk while profiting from a 10% drop. The RSI at 72.2 suggests overbought conditions, but the 30D support at $339.98 could act as a psychological floor.

Volatility on the Horizon: Earnings as the Tipping Point

Broadcom’s Q4 report is the wildcard. If AI chip revenue exceeds $6B (as projected), the $400 call wall could ignite a breakout. But if management tones down guidance or the $380 support breaks, the $300 put floor might get tested. Either way, the next 48 hours will define AVGO’s near-term path.

This isn’t a high-conviction long or short—it’s a high-conviction wait-and-see. The options market is pricing for a tight range, but earnings could flip the script. Play it smart: use the $400 call as your lever and the $380 put as your net. The rest? Let the numbers do the talking.