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 10 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 40% bearish. Among these notable options, 2 are puts, totaling $87,645, and 8 are calls, amounting to $444,360.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $135.0 to $280.0 for Broadcom over the recent three months.

Analyzing Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

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 activity within a strike price range from $135.0 to $280.0 in the last 30 days.

Broadcom Option Volume And Open Interest Over Last 30 Days

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.

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.

Present Market Standing of Broadcom

• Currently trading with a volume of 2,667,596, the AVGO's price is down by -1.34%, now at $198.04.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 30 days.

What Analysts Are Saying About Broadcom

4 market experts have recently issued ratings for this stock, with a consensus target price of $223.75.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Seaport Global downgraded its action to Buy with a price target of $230. * Maintaining their stance, an analyst from B of A Securities continues to hold a Buy rating for Broadcom, targeting a price of $240. * Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for Broadcom, targeting a price of $215. * An analyst from Citigroup has decided to maintain their Buy rating on Broadcom, which currently sits at a price target of $210.

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.