Unpacking the Latest Options Trading Trends in Broadcom

Author: Benzinga Insights | April 16, 2024 10:31am

Financial giants have made a conspicuous bearish move on Broadcom. Our analysis of options history for Broadcom (NASDAQ:AVGO) revealed 15 unusual trades.

Delving into the details, we found 40% of traders were bullish, while 60% showed bearish tendencies. Out of all the trades we spotted, 3 were puts, with a value of $95,880, and 12 were calls, valued at $603,760.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $720.0 to $1560.0 for Broadcom over the recent three 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 $720.0 to $1560.0 in the last 30 days.

Broadcom Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
AVGO	CALL	SWEEP	BEARISH	04/19/24	$12.3	$11.7	$11.7	$1340.00	$132.8K	494	26
AVGO	CALL	TRADE	BEARISH	01/17/25	$625.9	$616.9	$616.9	$720.00	$61.6K	316	1
AVGO	CALL	SWEEP	BULLISH	04/19/24	$8.8	$8.1	$8.1	$1355.00	$61.1K	292	13
AVGO	CALL	TRADE	NEUTRAL	01/17/25	$180.0	$168.1	$173.06	$1320.00	$51.9K	582	0
AVGO	CALL	SWEEP	BULLISH	05/17/24	$16.0	$15.6	$15.95	$1450.00	$47.9K	436	36

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

• Trading volume stands at 212,439, with AVGO's price up by 0.56%, positioned at $1318.0.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 44 days.

What The Experts Say On Broadcom

5 market experts have recently issued ratings for this stock, with a consensus target price of $1568.0.

• An analyst from TD Cowen has elevated its stance to Outperform, setting a new price target at $1500.
• An analyst from Rosenblatt has revised its rating downward to Buy, adjusting the price target to $1500.
• An analyst from Evercore ISI Group downgraded its action to Outperform with a price target of $1620.
• An analyst from Deutsche Bank has revised its rating downward to Buy, adjusting the price target to $1500.
• Reflecting concerns, an analyst from Benchmark lowers its rating to Buy with a new price target of $1720.

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.

Posted In: AVGO