AVGO Options Signal Bullish Momentum: $400 Call OI Surge and $365 Put Hedge Setup

• Broadcom (AVGO) trades at $383.32, up 0.7% with a bullish Kline pattern and MACD above signal line.
• Options data shows heavy call open interest at $400 and $410 strikes, while puts cluster at $365–$367.50.
• BofA just raised AVGO’s price target to $460, citing Google’s TPUv7 adoption and ASP growth.

Here’s the takeaway: AVGO’s options market and technicals align for a bullish bias, with key resistance at $400 and support near $365. The stock’s 59.5 RSI and 30D/200D moving average spread suggest upward momentum, but traders should watch for short-term volatility ahead of earnings on Dec 11.

Bullish Pressure at $400 and Hedging at $365

The options chain tells a clear story. This Friday’s top OTM call is AVGO20251205C400 with 9,896 open contracts—nearly double the next strike. That’s not just noise; it’s a vote of confidence from institutional players. Meanwhile, puts at $365 (7,503 OI) and $367.50 (5,945 OI) act as a safety net, suggesting some hedging ahead of earnings. The 1.03 put/call ratio for open interest isn’t bearish—it’s balanced, but the call-heavy skew at $400+ hints at a potential breakout target.

Block trading is quiet today, which means no sudden whale moves to disrupt the setup. But don’t ignore the $365 put wall: if AVGO dips below $376.53 (today’s low), that strike could become a magnet for short-term buyers.

News Flow Fuels the Bull Case

Susquehanna and BofA aren’t just raising price targets—they’re rewriting the narrative. Google’s TPUv7 launch positions Broadcom as a critical player in AI infrastructure, with ASPs doubling by 2026. That’s not speculative hype; it’s a $110 billion backlog turning into revenue. The challenge? AVGO’s 95.6 P/E and 87.7% debt-to-equity ratio mean any earnings miss could trigger a sharp correction. But the options data already prices in this risk, with puts at $365 acting as a buffer.

Trade Ideas: Calls for Breakouts, Puts for Protection

For options traders:

• AVGO20251205C400 (this Friday’s $400 call): With 9,896 contracts open, this is the most liquid OTM call. If AVGO closes above $400 by Friday, it could spark a chain reaction of assignments.
• AVGO20251212P365 (next Friday’s $365 put): Buy this for downside protection. If the stock dips below $376.53, this strike could see a surge in demand.

For stock buyers:

• Entry near $376.53 (today’s low) with a target at $385 (30D support/resistance zone).
• Aggressive bulls could chase a breakout above $383.75 (intraday high) with a $390 target.
• Stop-loss below $375 to avoid triggering the $365 put wall.

Volatility on the Horizon

The next two weeks will test AVGO’s resolve. Earnings on Dec 11 could validate the $460 price targets—or expose cracks in the AI growth story. In the short term, the $400 call wall and $365 put support create a trading range. But if the stock holds above $376.53, the path to $400 becomes a high-probability play.

Bottom line: AVGO is a high-conviction trade for AI believers, but don’t ignore the debt overhang. Use the $365 put as insurance and let the $400 call play out—this is a stock where options sentiment and fundamentals are in sync.