AVGO Options Signal $400 Bullish Battle: How to Play the TPU-Driven Breakout

• Broadcom (AVGO) trades at $382.12, up 0.4% from its Dec 3 close, with intraday support at $376.53 and resistance near $383.89.
• Options activity shows heavy call open interest at the $400 and $410 strikes (expiring Friday), while puts at $365 and $367.5 hint at cautious downside hedging.
• BofA just raised AVGO’s price target to $460, citing Google’s TPU ecosystem expansion—this could fuel near-term upside momentum.

Here’s the thing: AVGO’s options market is locked in a tight battle between bulls eyeing a $400+ breakout and bears bracing for a pullback. With technicals and fundamentals aligning, today’s $0.4% rally might just be the beginning.

Bullish Pressure at $400: Why Options Are Cheering a Breakout

Looking at this Friday’s options chain, the AVGO20251205C400 call has 9,896 open contracts—the highest of any strike. That’s not random. Big players are positioning for a sharp move above $383.89, where the stock has already tested resistance. The $410 strike (7,614 OI) adds extra weight to the bullish case, suggesting a potential run toward BofA’s $460 target.

But it’s not all one-way bets. Puts at $365 ($7,503 OI) and $367.5 ($5,945 OI) show some hedging activity. Think of it like a tug-of-war: bulls are pushing hard, but bears aren’t entirely out of the game. The key risk? If AVGO dips below $376.53, those puts could trigger a short-term selloff.

TPU News: Why $460 Isn’t Just a Fantasy

BofA’s upgrade isn’t just a number—it’s a signal. Google’s Gemini 3 AI model, trained entirely on TPU chips, is now opening doors for external rentals. That means Broadcom’s ASPs (average selling prices) could jump from $5K–6K to $12K–15K per chip by 2026. For context, AVGO’s current price is just 84% of that $15K target.

Investor sentiment is already shifting. The $400 call OI surge aligns with this narrative—traders are betting the $382.12 level is a springboard, not a ceiling. But here’s the catch: if unit demand misses expectations, gross margins could crumble. That’s why those $365 puts exist—they’re a hedge against overbought optimism.

Trade Ideas: Calls, Puts, and Precision Entries

For options traders, the AVGO20251205C400 call is a no-brainer if AVGO breaks above $383.89. The $400 strike is 4.7% out of the money, but with 24 hours until expiration, a sharp move could turn this into a winner. If you prefer a longer play, the AVGO20251212C405 (2,843 OI) offers more time for the TPU story to unfold.

Stock traders should consider entry near $376.53 (intraday low) if the 30D support zone (339.98–341.24) holds. A bullish breakout above $383.89 could target $385–$390, while a breakdown below $375 would signal caution. For downside protection, the AVGO20251205P365 put offers a 1.6% buffer if volatility spikes.

Volatility on the Horizon: What to Watch

AVGO’s 59.5 RSI isn’t screaming overbought yet, but it’s close. The MACD histogram (2.95) and bullish Kline pattern suggest momentum is still trending higher. However, Bollinger Bands show the stock is trading 5.3% above the 20-day moving average—meaning a pullback to the $362.42 middle band isn’t out of the question.

Bottom line: This is a high-conviction trade for AVGO bulls. The TPU story gives the stock a clear catalyst, while options activity confirms institutional buy-in. But don’t ignore the $365–$375 support cluster—it’s the last line of defense before the bears take control. Play it smart: set tight stops and let winners run if the $400 level cracks.