Bull Call Accumulation at $340–$400 as AVGO Eyes AI Breakout—Options Suggest a 10–15% Rally by March 20th

• Broadcom (AVGO) is trading at $326.94 today, up 1.48% with volume of 16.1 million shares.
• Options traders are piling into call options at the $340–$400 range, with OI of 14,204–17,489 ahead of Friday’s expiry.
• Block trades show a $350 put sold for $736K and a $305 put dumped for $7K—signaling insider optimism and distribution.

There’s no mistaking the signal from the options market: traders are getting bullish on Broadcom. A sharp skew in open interest toward out-of-the-money (OTM) calls, particularly around the $340–$400 range, suggests a growing conviction that AVGO is about to break out of its mid-March range. With AI news firing on all cylinders and block trades hinting at accumulation and distribution, it’s time to take a closer look.

Bull Call Skew Signals a Potential 10–15% Move—Put OI Remains a Cautionary Tail

The options market is clearly tilted toward the upside. For Friday’s expiration (Mar 20), the largest open interest for OTM calls is at the $400 strike with 17,489 contracts, followed by $420 (16,748), $370 (14,568), $340 (14,536), and $350 (14,204). That’s not a random distribution—it’s a pattern. Traders are positioning for a sharp move above $340, and the bulk of OI at $400 suggests they’re preparing for a 10–15% pop before the end of the week.

Contrast that with the put side: the $275 strike leads with 28,437 contracts, followed by $240 (16,892), $300 (15,620), and so on. While puts remain higher in total open interest (put/call ratio of 1.14), the heavy call accumulation shows a growing belief that the $320–$330 support zone is holding and a move above $340 is imminent.

And then there are the block trades. A 320-lot $350 put was bought at $736K on Mar 20, suggesting someone big is betting the stock won’t fall below that level. Meanwhile, a 1,000-lot $305 put was sold at $7K—likely a distribution move by a large holder. These are signals of caution on the downside but strong accumulation on the upside.

AI Revenue Explosions and $100B Projections Are Fueling the Momentum

Broadcom’s recent news couldn’t be more bullish. AI revenue hit $8.4 billion in Q1 FY2026, a 106% year-over-year jump. That’s not just growth—it’s domination. And with Morgan Stanley and JPMorgan raising price targets to $475 and $500 respectively, the Street is now seeing a $100B+ AI revenue opportunity by 2027. Add in a $10B buyback and a 1.6T optical module rollout, and this is a company that’s not just talking AI—doing it.

Investors are starting to price in the future. The $340–$400 call OI isn’t just speculation—it’s a bet that AVGO’s AI narrative will translate into real earnings. That’s why the puts are still heavy: not everyone’s convinced yet. But the calls are the ones to watch if you’re looking to take a position.

Two Trade Ideas to Capture the AI Pop—Options and Stock

Let’s get practical. If you’re bullish on AVGO, here are two trade setups with clear entry and exit points:

1. Buy the $340 Call (AVGO20260320C340) for a 5–10% move by Friday.

• Why: 14,536 contracts have already positioned at this level. The RSI is at 45, suggesting a reentry point, and Bollinger Bands show the stock is near the upper end of its range.
• Entry: Buy the $340 call if AVGO holds above $326.94 and shows a clear upward bias.
• Target: $350–$360 by Friday, which would yield a 7–12% return on the call.

2. Buy AVGO near $323.36 (200D MA) with a stop at $320.06.

• Why: The stock is bouncing near its 30D MA of $329.37, and the 200D MA at $323.36 is a key psychological support. The MACD is crossing into positive territory, and the RSI is in oversold range—this could be a setup for a rebound trade.
• Entry: Buy AVGO around $323.36
• Stop: $320.06 (intraday low today)
• Target: $330–$335 by next week

Volatility on the Horizon—Position for a Week of AI Fireworks

With AI revenue surging, new optical tech in production, and $10B buybacks in play, AVGO isn’t just in a growth story—it’s in a breakout phase. The options market is already pricing in a potential move above $340 by the weekend. For traders, this is a high-conviction setup that blends technicals, sentiment, and fundamental news into one. Just keep an eye on the $320 level: if that breaks, it could trigger a wave of panic selling on the put side. But right now, the bulls are in control—and the stock is about to move.