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 30 uncommon options trades for Broadcom.
This isn't normal.
The overall sentiment of these big-money traders is split between 30% bullish and 70%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $312,105, and 25 are calls, for a total amount of $1,046,554.
Projected Price Targets
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $760.0 and $2100.0 for Broadcom, spanning the last three months.
Analyzing Volume & Open Interest
In today's trading context, the average open interest for options of Broadcom stands at 256.96, with a total volume reaching 1,119.00. 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 $760.0 to $2100.0, throughout the last 30 days.
Broadcom 30-Day Option Volume & Interest Snapshot
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| AVGO | PUT | TRADE | NEUTRAL | 05/03/24 | $199.6 | $190.9 | $195.1 | $1540.00 | $136.5K | 0 | 0 |
| AVGO | CALL | SWEEP | NEUTRAL | 01/16/26 | $103.0 | $98.2 | $100.55 | $1920.00 | $80.4K | 31 | 3 |
| AVGO | CALL | TRADE | BEARISH | 05/03/24 | $8.4 | $8.3 | $8.3 | $1500.00 | $78.0K | 35 | 110 |
| AVGO | CALL | SWEEP | BULLISH | 05/03/24 | $7.5 | $7.1 | $7.5 | $1500.00 | $75.0K | 35 | 102 |
| AVGO | PUT | TRADE | BEARISH | 04/19/24 | $65.0 | $61.7 | $65.0 | $1390.00 | $65.0K | 163 | 0 |
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
Present Market Standing of Broadcom
- Trading volume stands at 386,057, with AVGO's price up by 0.78%, positioned at $1332.64.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 49 days.
Professional Analyst Ratings for 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 $1525.0.
- An analyst from Barclays downgraded its action to Overweight with a price target of $1405.
- In a cautious move, an analyst from Deutsche Bank downgraded its rating to Buy, setting a price target of $1500.
- Reflecting concerns, an analyst from Rosenblatt lowers its rating to Buy with a new price target of $1500.
- Showing optimism, an analyst from TD Cowen upgrades its rating to Outperform with a revised price target of $1500.
- Reflecting concerns, an analyst from Benchmark lowers its rating to Buy with a new price target of $1720.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Broadcom options trades with real-time alerts from Benzinga Pro.
© 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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