What the Options Market Tells Us About Broadcom

High-rolling investors have positioned themselves bullish on Broadcom 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 20 options trades for Broadcom. This is not a typical pattern.

The sentiment among these major traders is split, with 45% bullish and 30% bearish. Among all the options we identified, there was one put, amounting to $31,521, and 19 calls, totaling $1,314,967.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $800.0 to $1850.0 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 $800.0 to $1850.0 in the last 30 days.

Broadcom Option Activity Analysis: 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.

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.

Where Is Broadcom Standing Right Now?

• Trading volume stands at 716,919, with AVGO's price down by -0.4%, positioned at $1722.37.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 55 days.

Expert Opinions on Broadcom

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $1862.0.

• Maintaining their stance, an analyst from Piper Sandler continues to hold a Overweight rating for Broadcom, targeting a price of $2000.
• An analyst from Rosenblatt has decided to maintain their Buy rating on Broadcom, which currently sits at a price target of $1650.
• An analyst from Evercore ISI Group has decided to maintain their Outperform rating on Broadcom, which currently sits at a price target of $2010.
• An analyst from B of A Securities downgraded its action to Buy with a price target of $2150.
• In a cautious move, an analyst from Rosenblatt downgraded its rating to Buy, setting a price target of $1500.

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.