Broadcom (AVGO) Options Signal Bullish Breakout Potential: Key Strikes and Strategies for Dec 12–19 Expirations

• Current price: $403.66 (up 0.64% from $401.10)
• Call/put open interest ratio: 1.04 (slight bearish edge, but heavy call activity at $420 and $500 strikes)
• Analysts target $435–$525, but insider selling raises caution

Broadcom’s options market is locked in a tug-of-war between bulls eyeing a $420+ breakout and bears hedging below $360. With earnings on Dec 11 and technicals pointing to a short-term bullish trend, the stock sits at a crossroads—supporting a calculated bet on upside momentum.

The Battle for $420: What Options Reveal About Market Sentiment

Let’s start with the numbers. This Friday’s options chain shows AVGO20251212C420 (OI: 5,902) as the most watched call, while AVGO20251212P320 (OI: 4,898) dominates the put side. The next Friday expiry amplifies this tension: AVGO20251219C410 (OI: 6,579) and AVGO20251219P300 (OI: 10,443) suggest a high-stakes contest.

Here’s what that means:

• Bulls are stacking calls at $410–$420, betting on a push above the $406.93 intraday high and into analyst price targets.
• Bears are hedging aggressively below $360, with puts at $320 acting as a psychological floor.

The lack of block trades (no large institutional orders) means retail and institutional players are roughly aligned—for now. But if AVGO fails to break $420, the put-heavy positioning could accelerate a pullback.

News Flow: Analyst Hype vs. Insider Caution

Mizuho and Cantor Fitzgerald are all-in on Broadcom as an AI infrastructure leader, citing Google’s Gemini 3 and Meta’s TPU adoption. That’s why you’re seeing a 73% YTD rally and a $403.66 fair value estimate. But don’t ignore the red flags: CEO Hock Tan’s $33.96M share sale in September and a 100.7x P/E ratio that’s triple the semiconductor average.

The market’s reaction to Q4 earnings on Dec 11 will likely decide whether this is a sustainable rally or a correction in disguise. For now, the options data and analyst optimism are in sync—but insider selling adds a layer of risk.

Actionable Strategies: Calls for Breakouts, Puts for Protection

If you’re bullish: Buy AVGO20251219C410 (OI: 6,579) or AVGO20251219C420 (OI: 5,176). Why? These strikes align with both analyst price targets and the upper Bollinger Band ($412.96). A break above $406.93 (today’s high) would validate the call-heavy positioning.

If you’re cautious: Buy AVGO20251219P360 (OI: 6,988) to hedge a drop below the 30D support zone ($339.98–$341.24). The RSI at 71.5 suggests overbought conditions, so a pullback to $395.51 (today’s low) isn’t out of the question.

For stock traders: Consider entry near $400 if the 200D moving average ($276.14) continues to act as a floor. Target $420 if the 30D MA ($366.74) holds; exit below $395.51 to protect gains.

Volatility on the Horizon: Earnings as the Tipping Point

Broadcom’s options activity and technicals paint a clear picture: the market is pricing in a breakout, but execution risks linger. Earnings will be the catalyst—either confirming AI-driven momentum or exposing cracks in the valuation. For now, the $420 call wall and $360 put fortress define the battlefield.

Your move? If you’re comfortable with the risk/reward, go long calls at $410–$420. If not, sit on the sidelines—this is a high-stakes game, and the next few days could rewrite the script.