High-rolling investors have positioned themselves bullish on Broadcom (NASDAQ:AVGO), and it’s important for retail traders to take note.
This activity came to our attention today through Benzinga’s tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in AVGO often signals that someone has privileged information.
Today, Benzinga’s options scanner spotted 24 options trades for Broadcom. This is not a typical pattern.
The sentiment among these major traders is split, with 50% bullish and 50% bearish. Among all the options we identified, there was one put, amounting to $45,920, and 23 calls, totaling $2,024,949.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $500.0 to $1200.0 for Broadcom over the recent three months.
Volume & Open Interest Trends
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 $500.0 to $1200.0, over the past month.
Broadcom 30-Day Option Volume & Interest Snapshot
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| AVGO | CALL | SWEEP | BEARISH | 06/21/24 | $1050.00 | $979.9K | 609 | 83 |
| AVGO | CALL | TRADE | NEUTRAL | 04/19/24 | $1070.00 | $182.0K | 66 | 25 |
| AVGO | CALL | TRADE | BULLISH | 01/12/24 | $1057.50 | $76.9K | 36 | 26 |
| AVGO | CALL | SWEEP | BULLISH | 02/16/24 | $1200.00 | $57.0K | 417 | 703 |
| AVGO | CALL | TRADE | NEUTRAL | 01/19/24 | $500.00 | $55.7K | 197 | 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.
Where Is Broadcom Standing Right Now?
- With a volume of 155,107, the price of AVGO is up 0.93% at $1059.0.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 52 days.
Professional Analyst Ratings for Broadcom
Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $1100.0.
- An analyst from Citigroup downgraded its action to Buy with a price target of $1100.
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.
