Broadcom Unusual Options Activity For February 28

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 16 extraordinary options activities for Broadcom. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 25% leaning bullish and 75% bearish. Among these notable options, 4 are puts, totaling $273,650, and 12 are calls, amounting to $828,310.

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 $600.0 to $1800.0 for Broadcom over the last 3 months.

Analyzing Volume & Open Interest

In today's trading context, the average open interest for options of Broadcom stands at 297.87, with a total volume reaching 1,179.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Broadcom, situated within the strike price corridor from $600.0 to $1800.0, throughout the last 30 days.

Broadcom 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

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.

After a thorough review of the options trading surrounding Broadcom, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of Broadcom

• With a volume of 86,275, the price of AVGO is down -0.55% at $1289.16.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 8 days.

What The Experts Say On Broadcom

A total of 4 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $1382.5.

• Consistent in their evaluation, an analyst from Mizuho keeps a Buy rating on Broadcom with a target price of $1450.
• In a cautious move, an analyst from Cantor Fitzgerald downgraded its rating to Overweight, setting a price target of $1300.
• An analyst from Cantor Fitzgerald has revised its rating downward to Overweight, adjusting the price target to $1300.
• An analyst from UBS persists with their Buy rating on Broadcom, maintaining a target price of $1480.

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.