AVGO Options Signal $410 Call Dominance: Earnings Catalyst and $300 Put Hedge Play

• Broadcom (AVGO) surges 2.63% to $400.51 amid bullish technicals and heavy call open interest at $410–$420 strikes.
• Options data shows 6,432 open interest at the $410 Dec 19 call, while puts at $300 ($10253 OI) hint at downside risk.
• Q4 earnings on Dec 11 could validate AI growth, with UBS and Bank of America raising price targets to $472 and $460.

Here’s the core insight: AVGO’s options market is pricing in a high-probability upside breakout. The stock is trading above all major moving averages, and the $410–$420 call strikes dominate open interest for next Friday’s expiration. But the $300 put OI suggests some hedging activity. This isn’t a coin toss—it’s a calculated bet on AI-driven momentum.

Bullish Sentiment Locked in $410–$420 Calls

The options chain tells a clear story. For the Dec 19 expiration, the $410 call (AVGO20251219C410) has 6,432 open interest—the highest of any strike. That’s 20% more than the next closest ($420 at 5,486 OI). Meanwhile, the $300 put (AVGO20251219P300) leads puts with 10,253 OI, nearly double the $310 put.

This isn’t just noise. The call-heavy skew suggests institutional money is positioning for a post-earnings pop. The $410 strike is just 2.4% above today’s price, making it a realistic target if Q4 results beat the $17.5B revenue estimate. But the $300 put (a 25% downside buffer) shows some caution—maybe from short-term traders hedging against a post-earnings slump.

News Flow Fuels the Bull Case

The past week’s news is a goldmine for AVGO bulls. UBS and Bank of America raised price targets to $472 and $460, citing a 63% YoY jump in AI chip revenue. Microsoft’s rumored shift from Marvell to Broadcom adds another layer of validation.

But here’s the catch: The stock’s current valuation (trading near $400) already reflects much of this optimism. A beat on earnings could push it toward $420, but a miss might trigger a test of the $360 support level. The options market isn’t pricing in a crash—it’s pricing in a controlled correction.

Actionable Trade Ideas: Calls for Earnings, Puts for Protection

For options traders:

• Buy AVGO20251219C410 (Dec 19 $410 call) at ~$12–$14. This strike aligns with the 30D moving average and is a logical target if AI revenue surprises.
• Buy AVGO20251219P300 (Dec 19 $300 put) at ~$18–$20 for downside protection. This is a 25% buffer below current price, ideal for hedging a post-earnings dip.

For stock traders:

• Enter near $398–$402 (today’s intraday range) with a target at $420. Use the $390 level as a stop-loss.
• Consider a diagonal spread: Buy the Dec 19 $410 call and sell the Dec 12 $420 call to collect premium while capping risk ahead of earnings.

Volatility on the Horizon: Positioning for AVGO’s Earnings Spark

The next four days are critical. If Q4 results exceed $17.5B revenue and $1.87 EPS, AVGO could break above the $408 Bollinger Band and test $430. But a miss might force a retest of the $360 support. Either way, the options market is already pricing for a directional move.

Your best bet? Ride the $410 call’s momentum while hedging with the $300 put. This isn’t a gamble—it’s a calculated play on a stock that’s already winning the AI race.