AVGO Options Signal Bullish Bias: Target $360 Calls as AI Infrastructure Play Gains Momentum

• Current Price Action: AVGO trades at $351.83, up 0.46% from yesterday’s close, with intraday volume surging to 6 million shares.
• Options Imbalance: Call open interest dominates at $360 and $355 strikes, while puts at $330 and $310 show heavy bearish positioning.
• News Catalyst: Broadcom’s AI-driven revenue surge and dividend hike clash with insider selling and margin concerns.

Here’s the takeaway: AVGO is perched on a tightrope between bullish AI momentum and bearish margin pressures. The options market is pricing in a high-probability move toward $360–$380 by next Friday, but downside risks linger below $330.

Bullish vs Bearish Sentiment in Options: A Battle for $360

The options chain tells a story of conviction. For this Friday’s expiration, AVGO20251226C360 (OI: 10,696) and AVGO20251226C355 (OI: 5,806) are the most watched calls, suggesting institutional bets on a breakout above $352.95 (today’s high). Meanwhile, puts at AVGO20251226P330 (OI: 12,132) and AVGO20251226P310 (OI: 9,538) hint at a bearish floor near $338.29 (200D support). The near-even put/call ratio (0.99) means both sides are hedging—but the higher call OI implies stronger upside bias.

The News: AI Growth vs Governance Red Flags

Broadcom’s Q4 results are a mixed bag. AI revenue jumped 74% to $6.5B, and a $0.65 dividend hike signals confidence. Analysts at Cantor Fitzgerald and Mizuho raised price targets to $450, betting on Google TPUs and hyperscaler demand. But insider selling by CEO Hock Tan ($195M in Q4) and rising short interest (69.8M shares) cast shadows. Think of it like a storm brewing: the fundamentals are sunny, but clouds of governance risks loom.

Actionable Trade Ideas: Calls for the Bold, Puts for the Cautious

• Options Play: Buy AVGO20251226C360 (strike price: $360) for this Friday’s expiration. Rationale: The $360 strike has the highest open interest and aligns with the 30D moving average (341.67). If AVGO breaks above $352.95, this call could catch a rally toward $370. For a longer-term bet, AVGO20260102C360 (OI: 8,587) offers more time for AI hype to materialize.
• Stock Play: Consider entry near $347.76 (today’s low) if the price holds above the 30D support (339.93). Target $360 as a key resistance level. If it fails, watch $338.29 (200D support) for a potential short setup.
• Hedge Strategy: Buy AVGO20251226P330 to protect against a drop below $338.29. The high OI here suggests a likely bounce zone.

Volatility on the Horizon: Balancing the Scales

The coming days will test AVGO’s resolve. A breakout above $360 could validate the bullish thesis, while a close below $338.29 might trigger a deeper correction. The key is to watch volume: if call buying accelerates next week, the $400 level (a 14% move) becomes a realistic target. But don’t ignore the puts—those $310 strikes are a warning sign that bears aren’t backing down. Stay nimble. The AI train is gaining speed, but the tracks are bumpy.