AVGO Options Signal Bullish Bias: Target $360 Calls as AI Infrastructure Catalyst Kicks In

• Broadcom (AVGO) trades at $352.18, up 0.56% with volume surging to 8.16M shares.
• Options data shows heavy call open interest at $360 and $370, while puts dominate at $330 and $310.
• Analysts highlight AI-driven growth, with Truist raising the price target to $510 and Cantor Fitzgerald calling AVGO a top 2026 pick.

The options market and technicals are painting a clear picture: Broadcom is primed for a bullish breakout. With call open interest surging at key strikes and AI infrastructure news fueling optimism, traders have a defined path to capitalize on this momentum. Let’s break down the setup.

Where Smart Money Is Piling In: Calls at $360, Puts at $330

The options chain tells a story of cautious optimism. For this Friday’s expiration, the top OTM call options are clustered at $360 (OI: 10,696) and $370 (OI: 7,522), while puts peak at $330 (OI: 12,132) and $310 (OI: 9,538). This suggests two key scenarios:

• Bullish catalysts are priced in at $360–$370, where heavy call buying indicates a target for a breakout.
• Downside protection is being hedged at $330–$310, with puts acting as a buffer against a potential pullback.

The put/call ratio for open interest is nearly balanced at 0.99, which isn’t a red flag but shows no overwhelming bearish sentiment. No block trades are reported, so institutional activity isn’t skewing the data. This is a clean setup for a directional play.

Why AI News and Earnings Beat Matter

Broadcom’s recent headlines are a goldmine for context. The $510 price target from Truist and Cantor Fitzgerald’s bullish call on AI infrastructure align with the options data. The company’s $73B AI backlog, VMware’s subscription shift, and custom ASICs for Google/Meta are real catalysts.

But here’s the kicker: the market isn’t just betting on growth. Broadcom’s Q4 earnings beat ($1.95/share) and $26.9B in free cash flow show it can sustain this momentum. Analysts are raising price targets because the fundamentals are solid, not just speculative. That’s a rare alignment of options sentiment and hard data.

Actionable Trade Ideas: Calls, Puts, and Stock Entries

For options traders, the most attractive plays are:

• AVGO20251226C360 (this Friday’s $360 call): With 10,696 contracts open, this strike is the sweet spot for a breakout. If AVGO closes above $360 by Friday, these calls could see explosive gains.
• AVGO20260102C370 (next Friday’s $370 call): A longer-term play for a potential push toward $400.

For conservative traders, the AVGO20251226P330 put offers downside protection. If the stock dips below $347.76 (today’s intraday low), this strike could act as a floor.

Stock traders should consider:

• Entry near $347.76 if support holds. A break above $352.95 (intraday high) would confirm the bullish bias.
• Target zone: $360–$370. A close above $360 would validate the options-driven thesis.
• Stop-loss: Below $338.30 (200D support).

Volatility on the Horizon: A Bullish Springboard

The convergence of AI-driven demand, strong earnings, and options positioning points to a breakout. While risks like regulatory scrutiny exist, Broadcom’s $26.9B in free cash flow and institutional confidence (76% ownership) mitigate them.

Traders should watch the $360 level closely. If AVGO breaks this threshold, the $370–$400 range becomes a realistic target. For now, the $347.76 support is critical—hold there, and the bullish case remains intact.

This is a setup where the options market, technicals, and fundamentals all align. Time to position accordingly.