27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Deep-pocketed investors have adopted a bearish approach towards Broadcom (NASDAQ:AVGO), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in AVGO usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 34 extraordinary options activities for Broadcom. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 32% leaning bullish and 67% bearish. Among these notable options, 7 are puts, totaling $315,675, and 27 are calls, amounting to $2,030,842.
Predicted Price Range
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $560.0 and $1200.0 for Broadcom, spanning the last three months.
Analyzing Volume & Open Interest
In terms of liquidity and interest, the mean open interest for Broadcom options trades today is 454.68 with a total volume of 1,696.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Broadcom's big money trades within a strike price range of $560.0 to $1200.0 over the last 30 days.
Broadcom Call and Put Volume: 30-Day Overview
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| AVGO | CALL | TRADE | BEARISH | 12/15/23 | $910.00 | $453.1K | 567 | 227 |
| AVGO | CALL | TRADE | BEARISH | 04/19/24 | $700.00 | $427.5K | 3 | 20 |
| AVGO | CALL | SWEEP | NEUTRAL | 12/15/23 | $900.00 | $76.8K | 1.0K | 58 |
| AVGO | CALL | TRADE | BULLISH | 06/21/24 | $560.00 | $73.3K | 38 | 9 |
| AVGO | CALL | SWEEP | NEUTRAL | 01/19/24 | $920.00 | $71.9K | 875 | 20 |
About Broadcom
Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments.Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.
Present Market Standing of Broadcom
- Trading volume stands at 1,311,417, with AVGO's price down by -1.3%, positioned at $911.93.
- RSI indicators show the stock to be is currently neutral between overbought and oversold.
- Earnings announcement expected in 2 days.
What Analysts Are Saying About Broadcom
In the last month, 4 experts released ratings on this stock with an average target price of $1100.0.
- An analyst from Rosenblatt has revised its rating downward to Buy, adjusting the price target to $1000.
- An analyst from Oppenheimer persists with their Outperform rating on Broadcom, maintaining a target price of $1100.
- Consistent in their evaluation, an analyst from Susquehanna keeps a Positive rating on Broadcom with a target price of $1100.
- An analyst from Keybanc persists with their Overweight rating on Broadcom, maintaining a target price of $1200.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Broadcom with Benzinga Pro for real-time alerts.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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