Russ Cohen

Broadcom’s Options Frenzy: What Investors Should Note Broadcom’s Options Frenzy: What Investors Should Note

Large investors with ample capital have taken a notably bearish stance on Broadcom.

Upon examining the options history for Broadcom AVGO, we have identified 42 trades.

Analyzing each trade individually, it is clear that 38% of investors initiated trades with bullish expectations and 61% with a bearish outlook.

Among the trades identified, 2 are puts, totaling $63,300, and 40 are calls, totaling $1,796,319.

The Price Target Outlook

Assessing the Volume and Open Interest in these contracts, it appears that major players have been eyeing a price range from $760.0 to $1680.0 for Broadcom over the last quarter.

Trends in Volume & Open Interest

Reviewing the volume and open interest is a crucial step in options trading. These metrics provide insight into the liquidity and investor interest in Broadcom’s options at specified strike prices. The following data illustrates the fluctuation in volume and open interest for both calls and puts, associated with significant trades related to Broadcom, within a strike price range from $760.0 to $1680.0 over the past 30 days.

Key Options Uncovered

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
AVGO CALL TRADE NEUTRAL 03/15/24 $1080.00 $145.5K 563 31
AVGO CALL TRADE NEUTRAL 05/17/24 $1070.00 $103.5K 0 10
AVGO CALL TRADE NEUTRAL 01/19/24 $1075.00 $102.9K 345 80
AVGO CALL TRADE BULLISH 01/26/24 $1100.00 $101.4K 483 145
AVGO CALL TRADE BULLISH 04/19/24 $1070.00 $97.0K 75 0

A Closer Look at Broadcom

Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It offers 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. Primarily a fabless designer, it also has some in-house manufacturing, such as for its best-of-breed FBAR filters that are utilized in the Apple iPhone. In the software realm, it provides virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments. Broadcom is the culmination of consolidation, combining businesses from former companies like legacy Broadcom and Avago Technologies in chips, along with Brocade, CA Technologies, and Symantec in software.

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Considering the recent options activity surrounding Broadcom, it is now pertinent to delve into the company’s overall performance.

Current Market Standing of Broadcom

  • Trading volume stands at 1,320,880, with AVGO’s price up by 0.58%, positioned at $1106.37.
  • RSI indicators portray the stock as currently neutral between overbought and oversold conditions.
  • Earnings announcement is anticipated in 48 days.

Options trading entails heightened risks and potential rewards. Proficient traders effectively manage these risks by continuously educating themselves, adjusting their strategies, monitoring multiple indicators, and closely tracking market movements. Stay informed about the latest Broadcom options trades with real-time alerts from Benzinga Pro.