AVGO Options Signal Bullish Bias: Target $360 Calls as AI Backlog Drives 2026 Growth

• AVGO trades at $351.08, up 0.48% with volume surging past 2.77M shares.
• Options data shows heavy call open interest at $360 and $370 strikes for Friday’s expiration.
• Citi and analysts project AI-driven revenue to hit $60B+ in 2026, fueling long-term optimism.

The options market and technicals are painting a clear picture: Broadcom has upside potential today. With AI demand surging and options positioning skewed toward bullish bets, now’s a moment to act with precision. Let’s break it down.

Bullish Calls Dominate as Puts Hedge Caution

Looking at this Friday’s options chain, call open interest peaks at $360 (9,001 contracts) and $370 (5,587), while puts cluster at $340 (7,975) and $300 (7,718). The put/call ratio for open interest is nearly balanced at 1.04, but the concentration of calls above the current price suggests aggressive positioning for a breakout.

This isn’t just noise. The $360 strike sits just 2.5% above the current price, making it a logical target for traders expecting a push toward the 30-day moving average at $365.22. Meanwhile, the heavy put interest at $340 and $300 hints at a psychological floor—investors aren’t ruling out a pullback but are hedging against a sharp drop.

No major block trades are reported, so this is retail and institutional money flowing steadily, not a sudden whale move. The message? The market is pricing in a controlled rally, not a euphoric sprint.

AI Backlog and Earnings Validate the Bull Case

Citi’s forecast of $60B+ in 2026 revenue from Google, AWS, and Microsoft isn’t just a number—it’s a catalyst. Broadcom’s Q4 2025 earnings showed AI semiconductor sales jumping 74% YoY to $6.5B, with a $73B AI backlog already in the pipeline. Analysts at Truist and UBS aren’t just raising price targets; they’re betting on a structural shift in chip demand.

But here’s the catch: The stock’s RSI at 30.21 suggests it’s in oversold territory, yet volume hasn’t spiked to confirm a rebound. This creates a tension—the fundamentals scream ‘buy,’ but the technicals whisper ‘wait for a dip.’ The options data bridges that gap by showing where the action is: calls at $360 and $370, which align with the 30-day and 100-day moving averages.

Trade Ideas: Calls for Leverage, Stock for the Long Haul

For options traders, the AVGO20260102C360 (Jan 2 $360 call) is a prime candidate. With open interest at 9,001 and the stock trading near $351, a push above $355 could trigger a cascade of covering buys. If you’re bullish but cautious, pair it with a short-term put like AVGO20260102P340 to cap downside risk.

For stock buyers, target an entry near $341–$342, the upper bound of the 30D support zone (339.93–341.67). A break above $355 would aim for the middle Bollinger Band at $366.30. Stop-loss below $339.93 would protect against a surprise selloff.

Volatility on the Horizon: Ride the AI Wave

Broadcom’s options activity and news flow are locked in sync. The AI backlog is a tailwind, but the stock isn’t overbought yet. This Friday’s expirations could see a test of $360, with next Friday’s $400 calls (OI: 2,574) hinting at longer-term bullish bets.

Bottom line: This is a stock with momentum and a clear path higher. The options market isn’t just reacting to today’s price—it’s pricing in tomorrow’s AI-driven reality. Stay close to those key strikes, and don’t let fear of a pullback blind you to the bigger picture.