Behind the Scenes of Broadcom's Latest Options Trends

Investors with a lot of money to spend have taken a bearish stance on Broadcom AVGO.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with AVGO, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 17 uncommon options trades for Broadcom.

This isn't normal.

The overall sentiment of these big-money traders is split between 23% bullish and 76%, bearish.

Out of all of the special options we uncovered, 8 are puts, for a total amount of $374,406, and 9 are calls, for a total amount of $569,206.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $800.0 and $1500.0 for Broadcom, spanning the last three months.

Volume & Open Interest Trends

Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $800.0 to $1500.0 in the last 30 days.

Broadcom Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

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.

Where Is Broadcom Standing Right Now?

• With a volume of 75,812, the price of AVGO is down -1.8% at $1215.0.
• RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
• Next earnings are expected to be released in 72 days.

What The Experts Say On Broadcom

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $1591.0.

• Maintaining their stance, an analyst from Mizuho continues to hold a Buy rating for Broadcom, targeting a price of $1625.
• Consistent in their evaluation, an analyst from Goldman Sachs keeps a Buy rating on Broadcom with a target price of $1550.
• In a cautious move, an analyst from Rosenblatt downgraded its rating to Buy, setting a price target of $1500.
• An analyst from Bernstein persists with their Outperform rating on Broadcom, maintaining a target price of $1600.
• Maintaining their stance, an analyst from B of A Securities continues to hold a Buy rating for Broadcom, targeting a price of $1680.

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.