Deep-pocketed investors have adopted a bearish approach towards Broadcom 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 32 extraordinary options activities for Broadcom. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 37% leaning bullish and 62% bearish. Among these notable options, 4 are puts, totaling $484,310, and 28 are calls, amounting to $2,207,835.
What's The Price Target?
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $720.0 to $1510.0 for Broadcom during the past quarter.
Volume & Open Interest Development
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Broadcom's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Broadcom's whale activity within a strike price range from $720.0 to $1510.0 in the last 30 days.
Broadcom Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| AVGO | CALL | TRADE | NEUTRAL | 04/19/24 | $1240.00 | $437.2K | 72 | 1 |
| AVGO | PUT | TRADE | NEUTRAL | 04/19/24 | $1150.00 | $331.8K | 92 | 79 |
| AVGO | CALL | TRADE | BULLISH | 04/19/24 | $1200.00 | $249.4K | 170 | 32 |
| AVGO | CALL | TRADE | NEUTRAL | 03/15/24 | $720.00 | $244.9K | 171 | 0 |
| AVGO | CALL | TRADE | BEARISH | 01/26/24 | $1150.00 | $132.0K | 703 | 42 |
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.
Following our analysis of the options activities associated with Broadcom, we pivot to a closer look at the company's own performance.
Current Position of Broadcom
- With a volume of 285,095, the price of AVGO is up 0.16% at $1222.5.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 37 days.
Expert Opinions on Broadcom
In the last month, 2 experts released ratings on this stock with an average target price of $1312.5.
- An analyst from Goldman Sachs downgraded its action to Buy with a price target of $1325.
- An analyst from Cantor Fitzgerald downgraded its action to Overweight with a price target of $1300.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
