AVGO Options Signal Bullish Breakout: Target $400 Calls as AI Growth Accelerates

• AVGO surges 1.9% on strong AI-driven fundamentals and record Q3 revenue.
• Call OI dominance at $400–$410 suggests institutional bets on a $403.00 52-week high test.
• Analysts raise targets to $435–$472, aligning with options positioning and earnings momentum.

Broadcom’s options market is screaming bullish—and the stock’s 1.9% intraday pop isn’t just noise. With call open interest clustered above $400 and puts guarding $365, the setup screams: This stock is primed to break out. Let’s unpack why today’s data points to a high-conviction trade.

The Options Playbook: Calls at $400, Puts at $365

The OTM call options with the most open interest—$400, $410, and $415—tell a clear story. Traders are betting Broadcom will punch through its 52-week high of $403.00 in the next two weeks. The $400 strike, with 10,223 contracts outstanding, acts like a gravity point: if AVGO closes above it this Friday (Dec 12), those calls could ignite a cascade of profit-taking, pushing the stock higher.

But don’t ignore the puts. The $365 strike (7,420 OI) is a key psychological level. If AVGO stumbles below its 30D support at $339.98, that put could catch a bounce. The near-1:1 put/call ratio for open interest means the market isn’t pricing in extreme volatility—just a steady climb.

Why the Newsline Fuels the Bull Case

Broadcom’s Q3 results weren’t just solid—they were explosive. $16B in revenue, 22% YoY growth, and a $1.799T market cap make this more than a tech story. Analysts aren’t just raising targets; they’re redefining Broadcom’s trajectory. Google’s TPU expansion and Samsung’s HBM4 supply deal? Those aren’t hypotheticals—they’re tailwinds already priced into the stock.

Here’s the kicker: 25 analysts have AVGO rated as “Buy” or “Strong Buy.” When the entire Street agrees, retail traders often follow. The question isn’t if Broadcom can hit $400—it’s how fast.

Actionable Trade Ideas: Calls, Stock, and Timing

• Short-term play: Buy AVGO20251212C400 (Dec 12 expiry). If AVGO breaks above its intraday high of $393.53, this call could catch a $400–$410 pop.
• Longer-term play: Buy AVGO20251219C405 (Dec 19 expiry) if the stock holds above $385.15. The $405 strike lines up with analyst price targets and Bollinger Band resistance.
• Stock entry: Consider buying AVGO near $385 if it holds above the 30D support at $340. Target $405 as a first exit, with a stop-loss below $363.52 (middle Bollinger Band).

Volatility on the Horizon: Earnings and AI Momentum

With FQ4 earnings on Dec 11 and forward guidance in focus, Broadcom’s options market is pricing in a smooth ride. But don’t get complacent. If AVGO gaps above $400 before earnings, the 200D moving average at $192.49 will feel like a distant memory. This is a stock on a mission—and the options data says it’s just getting started.

Bottom line: The $400 call strikes are your best bet to ride the AI growth wave. But keep an eye on that $365 put: if AVGO stumbles, it could signal a pause in the rally. For now, the data says up—and the road to $450 just got a lot clearer.