AVGO Options Signal Bullish Bias: Target $360+ as AI Growth Drives Momentum

• Broadcom (AVGO) surges 2.15% to $348.78, breaking above 30D support at $339.93.
• Options market shows heavy call open interest at $350 and $360 strikes, with a 0.98 put/call ratio favoring bullish positioning.
• CEO’s $42M share sale sparks debate, but AI-driven fundamentals and $450 analyst price targets remain intact.

Here’s the takeaway: AVGO’s options activity and technicals align on a high-probability breakout scenario. The stock is perched at a critical inflection point—either it consolidates into a new range or surges toward $360+ on AI demand. Let’s break down why the data leans bullish.

Where Smart Money Is Betting: Calls at $350, Puts at $330

The options chain tells a clear story. This Friday’s top OTM calls are stacked at $350 (OI: 12,447), $360 (10,363), and $370 (6,908), while puts peak at $330 (11,795) and $310 (9,757). This isn’t just noise—it’s a calculated bet.

Think of it like a football game: the calls are the offense stacking blockers at the 350-yard line, while the puts are the defense digging trenches at $330. The put/call ratio (0.98) is nearly balanced, but the sheer volume of call OI suggests institutional players are pricing in a rally.

No major block trades to note, but the next Friday’s $560 call (OI: 3,068) hints at long-term bullishness. That’s a wildcard—either a hedge fund is hedging a big position or a whale is quietly accumulating cheap premium.

Why the CEO’s Sale Doesn’t Derail the Bull Case

Hock Tan’s $42.38M sale of 130,000 shares has traders scratching their heads. But here’s the rub: insiders often sell to diversify, not to signal trouble. Broadcom’s Q4 AI chip revenue grew 74% YoY, and it’s sitting on a $73B product backlog.

The market’s reaction? Mild. AVGO’s price action has ignored the sales, pushing higher on AI demand and VMware’s software tailwinds. Retail traders might panic, but institutions are focused on the $450 analyst price target—a $100+ upside from current levels.

Trade Ideas: Calls, Breakouts, and a Perfect Entry Zone

For options players:

• AVGO20251226C350 (this Friday’s $350 call): Buy if the stock holds above $345. With RSI at 35.5 (oversold), a rebound here could trigger a short-term pop.
• AVGO20260102C360 (next Friday’s $360 call): A safer play if the stock tests $341.67 (30D resistance). The 30D MA at $365.37 could act as a ceiling, but a break above $360 would signal a new trend.

For stock buyers:

• Entry near $339.93–$341.67 (30D support/resistance). If AVGO holds this zone, target $360–$370. Use the 200D MA at $284.36 as a stop-loss anchor.
• Risk-reversal strategy: Buy AVGO20251226C350 and sell AVGO20251226P330. This captures upside while capping downside risk at $330.

Volatility on the Horizon: A Bullish Setup

AVGO’s technicals and options data are in sync. The RSI at 35.5 suggests a rebound is due, and the Bollinger Bands (upper at $431.19) show extreme volatility. If the stock breaks above $350.11 (intraday high), watch for a retest of the 30D MA at $365.37.

The key takeaway? This isn’t a short squeeze or a hype-driven pop. It’s a calculated move by options players and institutions betting on AI’s next phase. The CEO’s sales are noise; the fundamentals are the signal.

Bottom line: AVGO is at a crossroads. The options market is pricing in a $360+ move by next Friday. If you’re in, lock in some calls. If you’re on the sidelines, wait for a pullback to $340 before entering. Either way, this stock isn’t going sideways for long.