Broadcom's Options Frenzy: What You Need to Know

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

The general mood among these heavyweight investors is divided, with 40% leaning bullish and 45% bearish. Among these notable options, 28 are puts, totaling $1,153,714, and 33 are calls, amounting to $3,464,101.

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 $500.0 to $1700.0 for Broadcom over the last 3 months.

Analyzing Volume & Open Interest

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 $500.0 to $1700.0 in 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 CALL TRADE NEUTRAL 09/20/24 $69.8 $65.3 $67.5 $1500.00 $675.0K 185 100
AVGO CALL TRADE BULLISH 06/21/24 $83.5 $79.0 $82.1 $1330.00 $484.3K 562 60
AVGO CALL TRADE BULLISH 06/21/24 $77.0 $75.5 $77.0 $1350.00 $192.5K 634 75
AVGO PUT SWEEP BULLISH 12/20/24 $176.2 $170.3 $172.37 $1420.00 $188.6K 128 7
AVGO CALL SWEEP BEARISH 06/14/24 $70.9 $64.9 $67.0 $1350.00 $167.5K 73 25

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.

In light of the recent options history for Broadcom, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Broadcom's Current Market Status

  • Currently trading with a volume of 571,640, the AVGO's price is up by 1.34%, now at $1350.68.
  • RSI readings suggest the stock is currently may be approaching overbought.
  • Anticipated earnings release is in 30 days.

What Analysts Are Saying About Broadcom

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $1556.6666666666667.

  • Reflecting concerns, an analyst from Evercore ISI Group lowers its rating to Outperform with a new price target of $1620.
  • An analyst from Jefferies has revised its rating downward to Buy, adjusting the price target to $1550.
  • Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for Broadcom, targeting a price of $1500.

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.

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