Broadcom Stock: The Latest to Enjoy OpenAI Tailwinds

It's Broadcom Inc (NASDAQ:AVGO) stock's turn to get a boost from OpenAI, after the two made their partnership official. The pair have been working together for 18 months, and just went public with their plans to co-build and deploy custom AI processors and 10 gigawatts of OpenAI-designed AI accelerators.

AVGO was last seen up 9.6% to trade at $355.81, climbing back up toward its Sept. 11 record high of $374.23. The ascending 50-day moving average lingers below as support, as well as a trendline connecting the stock's early-April trough to last session's low. The stock's 14-day relative strength index (RSI) of 26.9 sits in "oversold" territory, which typically precedes a short-term bounce. Year to date, the equity is up 53%. 

AVGO has seen 330,000 calls and 187,000 puts exchanged so far today, double the overall options volume typically seen at this point. The October 400 call is the most popular by far, with new positions opening there. 

Options are reasonably priced at the moment, too. Broadcom stock's Schaeffer's Volatility Index (SVI) of 50% ranks in the low 9th percentile of its annual range, meaning options traders are pricing in low volatility expectations.