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 70 extraordinary options activities for Broadcom. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 35% leaning bullish and 64% bearish. Among these notable options, 17 are puts, totaling $859,912, and 53 are calls, amounting to $2,720,928.
Predicted Price Range
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $710.0 to $1880.0 for Broadcom over the last 3 months.
Volume & Open Interest Trends
In terms of liquidity and interest, the mean open interest for Broadcom options trades today is 196.12 with a total volume of 4,835.00.
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 $710.0 to $1880.0 over the last 30 days.
Broadcom Call and Put Volume: 30-Day Overview
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| AVGO | PUT | SWEEP | BULLISH | 02/02/24 | $1210.00 | $162.0K | 147 | 289 |
| AVGO | CALL | TRADE | NEUTRAL | 03/08/24 | $900.00 | $159.5K | 0 | 0 |
| AVGO | CALL | SWEEP | BEARISH | 02/02/24 | $1215.00 | $150.0K | 103 | 240 |
| AVGO | CALL | TRADE | BULLISH | 01/17/25 | $1300.00 | $127.0K | 554 | 12 |
| AVGO | CALL | SWEEP | BULLISH | 02/02/24 | $1250.00 | $106.2K | 318 | 286 |
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.
Having examined the options trading patterns of Broadcom, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Where Is Broadcom Standing Right Now?
- With a volume of 915,793, the price of AVGO is down -0.81% at $1220.01.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 34 days.
Professional Analyst Ratings for Broadcom
A total of 2 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $1312.5.
- An analyst from Cantor Fitzgerald downgraded its action to Overweight with a price target of $1300.
- Reflecting concerns, an analyst from Goldman Sachs lowers its rating to Buy with a new price target of $1325.
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 |
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