Broadcom Unusual Options Activity For March 13

Investors with a lot of money to spend have taken a bearish stance on Broadcom AVGO.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with AVGO, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 13 uncommon options trades for Broadcom.

This isn't normal.

The overall sentiment of these big-money traders is split between 30% bullish and 69%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $111,749, and 11 are calls, for a total amount of $434,865.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $760.0 and $1500.0 for Broadcom, spanning the last three months.

Analyzing Volume & Open Interest

In today's trading context, the average open interest for options of Broadcom stands at 194.25, with a total volume reaching 33.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Broadcom, situated within the strike price corridor from $760.0 to $1500.0, throughout the last 30 days.

Broadcom Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

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 trading volume of 177,570, the price of AVGO is down by -0.87%, reaching $1280.62.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 78 days from now.

What The Experts Say On Broadcom

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $1540.0.

• Reflecting concerns, an analyst from Cantor Fitzgerald lowers its rating to Overweight with a new price target of $1600.
• An analyst from Mizuho persists with their Buy rating on Broadcom, maintaining a target price of $1450.
• An analyst from Rosenblatt persists with their Buy rating on Broadcom, maintaining a target price of $1500.
• In a cautious move, an analyst from Piper Sandler downgraded its rating to Overweight, setting a price target of $1650.
• Reflecting concerns, an analyst from Rosenblatt lowers its rating to Buy with a new price target of $1500.

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.