AVGO’s Options Signal Bullish Momentum: Key Strikes and Trade Setups for Dec 12–19

• AVGO trades at $402.82, down 2.46% from its 52-week high of $412.97
• Options open interest shows heavy call buying at $410–$420 and bearish puts at $300–$310
• Technicals suggest a short-term rebound near $394 support or a test of $424 resistance

Here’s the thing: AVGO’s options market is screaming about a potential breakout. With calls and puts locked in a tight battle, the stock sits at a crossroads—downside risk is real, but the long-term trend still favors bulls. Let’s break it down.

Bullish Pressure vs Bearish Hedges: Where Are the Big Bets?

AVGO’s options chain is a chessboard of positioning. For Friday’s expiry (Dec 12), the top call open interest piles up at $420 ($5865 OI) and $500 ($4606 OI), while puts dominate at $320 ($4829 OI) and $380 ($4537 OI). But the real story is next week: the $410 call (OI: 7301) and $300 put (OI: 9958) show a tug-of-war between those betting on a rebound and those bracing for a deeper selloff.

The put/call ratio (1.04) is nearly balanced, but the heavy put OI at sub-$300 strikes suggests some institutional hedging or bearish conviction. Meanwhile, calls at $410–$420 could ignite if the stock reclaims its 30D support at $340. The risk? If AVGO cracks $394 (today’s intraday low), the $300–$310 put strikes might become a magnet for panic selling.

No News, Just Numbers: What’s Driving the Action?

There’s no recent Broadcom news to explain this volatility. That means the move is likely technical—traders reacting to AVGO’s position above its 200D MA ($278) and the broader AI/software sector’s rotation. Without fundamentals to anchor sentiment, options activity becomes the canary in the coal mine. The heavy call buying at $410–$420 implies some players are pricing in a rebound to Bollinger Bands’ upper bound ($424) by next Friday.

But here’s the catch: retail traders often overreact to short-term dips. If AVGO’s 14D RSI (72.2) corrects below 60, the $380–$350 put strikes could see a surge in activity. Investor perception here is all about momentum—hold on to the trend, or cut losses fast.

Trade Setups: Calls, Puts, and Price Levels to Watch

For options:

• AVGO20251219C410 (next Friday’s $410 call): With 7301 OI, this strike is a sweet spot. If AVGO holds above $394, the $410 call could gain steam as a leveraged play on a rebound.
• AVGO20251219P310 (next Friday’s $310 put): A deep out-of-the-money hedge if you’re long the stock. The 9958 OI suggests some big players are bracing for a worst-case scenario.

For stock:

• Entry near $340 (30D support): If AVGO bounces off its 30D MA, this could be a low-risk entry. Target $424 (Bollinger upper band) as a profit zone.
• Short at $394 (intraday low): A breakdown below this level could trigger a test of the 200D MA. Exit at $380 or trail a stop above $405.

Volatility on the Horizon: Positioning for AVGO’s Next Move

AVGO isn’t just a stock—it’s a barometer for tech’s resilience. The options data tells us two things: bulls are defending the $340–$424 range, and bears are lurking below $300. The coming days will test whether this dip is a buying opportunity or a warning shot. My take? Ride the $410 call if the stock holds its ground, but keep a tight stop below $394. In trading, it’s not about being right—it’s about being ready.