What the Options Market Tells Us About Broadcom

Deep-pocketed investors have adopted a bullish 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 27 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 29% bearish. Among these notable options, 11 are puts, totaling $628,431, and 16 are calls, amounting to $632,474.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $760.0 to $2100.0 for Broadcom over the last 3 months.

Insights into Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Broadcom's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Broadcom's significant trades, within a strike price range of $760.0 to $2100.0, over the past month.

Broadcom Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
AVGO PUT SWEEP BULLISH 06/07/24 $94.9 $88.0 $91.48 $1450.00 $155.9K 27 37
AVGO PUT SWEEP BULLISH 06/07/24 $93.4 $88.2 $91.05 $1450.00 $137.2K 27 15
AVGO PUT SWEEP NEUTRAL 05/31/24 $29.4 $24.8 $27.05 $1365.00 $64.9K 168 89
AVGO CALL SWEEP NEUTRAL 06/07/24 $26.5 $24.9 $25.86 $1345.00 $64.5K 14 25
AVGO CALL TRADE NEUTRAL 01/17/25 $623.8 $611.3 $618.7 $760.00 $61.8K 661 1

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.

Current Position of Broadcom

  • Trading volume stands at 446,338, with AVGO's price down by -2.11%, positioned at $1335.32.
  • RSI indicators show the stock to be may be approaching overbought.
  • Earnings announcement expected in 12 days.

Professional Analyst Ratings for Broadcom

1 market experts have recently issued ratings for this stock, with a consensus target price of $1550.0.

  • Reflecting concerns, an analyst from Jefferies lowers its rating to Buy with a new price target of $1550.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Broadcom, Benzinga Pro gives you real-time options trades alerts.

Market News and Data brought to you by Benzinga APIs
Date of Trade
Strike Price
Posted In: OptionsMarketsBZI-UOA
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