AVGO Options Signal Bullish Momentum: Target $400–$410 Calls as Earnings Loom

• AVGO surges 2.26% to $389.64, with Bollinger Bands hinting at a potential $405 ceiling.
• Call OI dominance at $400 and $410 (this Friday’s top OTM strikes) suggests institutional bets on a breakout.
• BofA raises price target to $460 on Google TPU expansion, aligning with technicals and options flow.

Here’s the core insight: The options market and technicals are painting a clear picture—Broadcom is primed for a bullish push, with $400–$410 strikes acting as both a magnet and a pressure valve. Let’s break down why this matters for your trading desk.Bullish Imbalance in OTM Options: A Playbook for Institutional Bets

The options chain tells a story of conviction. For this Friday’s expiration, call open interest peaks at $400 (OI: 10,223) and $410 (OI: 7,356), while puts cluster at $365 (OI: 7,420) and $367.5 (OI: 5,944). This isn’t just noise—it’s a signal. The call-heavy setup suggests big players are hedging or positioning for a short-term pop, likely tied to the December 11 earnings report. The put OI at $365 acts as a safety net, but the ratio of total put/call open interest (1.02) is nearly neutral, meaning the market isn’t pricing in a crash. The real danger? If AVGO stumbles below $363.52 (middle Bollinger Band), those puts could trigger a selloff. But for now, the momentum is clearly northbound.

News Flow: Why $460 Isn’t Just a Fantasy

Broadcom’s recent headlines are fuel for the bullish fire. The $350 billion OpenAI chip deal and Google’s TPU ecosystem expansion aren’t abstract wins—they’re concrete revenue drivers. BofA’s $460 price target isn’t a stretch when you consider the $12,000–$15,000 ASP jump for TPU chips and the VMware Cloud Foundation 9.0 rollout. Even the ING partnership and quantum-safe SAN switches add layers of defensiveness. The only wildcard is the December 11 earnings report. While Wall Street expects $1.87/share, the Zacks Earnings ESP at -0.54% hints at cautious optimism. A beat here could send AVGO rocketing toward $400+.

Actionable Trades: Calls, Stock, and the Path to $460

1. Options Play: Buy AVGO20251212C400 (Dec 12 $400 call). With 4,777 contracts in OI and AVGO trading at $389.64, this strike is within striking distance. If the stock closes above $400 by Friday, the call could multiply your capital. For a longer play, AVGO20251212C410 offers higher reward but needs a stronger move.
2. Stock Entry: Consider buying AVGO near $340–$341 (30D support zone). If it holds, target $400 as a first profit point, with $460 as the ultimate goal based on BofA’s upgrade. Use the $363.52 middle Bollinger Band as a stop-loss reference.
3. Bearish Hedge: Sell AVGO20251212P365 (Dec 12 $365 put) to collect premium if you’re long the stock. The $365 strike aligns with the put-heavy OI and could cap losses if AVGO dips.

Volatility on the Horizon: Earnings as the Tipping Point

The next seven days are critical. Broadcom’s earnings report on December 11 could either validate the $460 thesis or expose cracks in the bullish narrative. If revenue exceeds $17.5 billion (the consensus), AVGO could gap up past $400. But if the Zacks ESP proves right and the report is lackluster, the $365–$367.5 put OI might dominate. Either way, the options market has already priced in a range—your job is to pick your side before the verdict.

Final Take: This isn’t a gamble—it’s a calculated bet. The options flow, technicals, and news all converge on one direction: up. Whether you go long calls, buy the stock at support, or hedge with puts, the key is to act before the December 11 catalyst. AVGO’s $460 target isn’t a dream—it’s a roadmap, and the market is handing you the keys.