Broadcom's Options Frenzy: What You Need to Know

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 191 uncommon options trades for Broadcom.

This isn't normal.

The overall sentiment of these big-money traders is split between 29% bullish and 70%, bearish.

Out of all of the special options we uncovered, 59 are puts, for a total amount of $4,266,540, and 132 are calls, for a total amount of $13,859,482.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $800.0 to $2100.0 for Broadcom over the recent three months.

Volume & Open Interest Trends

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Broadcom's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Broadcom's substantial trades, within a strike price spectrum from $800.0 to $2100.0 over the preceding 30 days.

Broadcom Option Volume And Open Interest Over Last 30 Days

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.

Where Is Broadcom Standing Right Now?

• With a trading volume of 667,447, the price of AVGO is up by 0.99%, reaching $1364.96.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 65 days from now.

Expert Opinions on Broadcom

5 market experts have recently issued ratings for this stock, with a consensus target price of $1570.0.

• In a cautious move, an analyst from Rosenblatt downgraded its rating to Buy, setting a price target of $1500.
• An analyst from Rosenblatt has revised its rating downward to Buy, adjusting the price target to $1500.
• An analyst from JP Morgan downgraded its action to Overweight with a price target of $1700.
• Maintaining their stance, an analyst from Mizuho continues to hold a Buy rating for Broadcom, targeting a price of $1550.
• Maintaining their stance, an analyst from Bernstein continues to hold a Outperform rating for Broadcom, targeting a price of $1600.

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.