Broadcom Unusual Options Activity For August 09

Investors with a lot of money to spend have taken a bullish 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 49 uncommon options trades for Broadcom.

This isn't normal.

The overall sentiment of these big-money traders is split between 48% bullish and 38%, bearish.

Out of all of the special options we uncovered, 26 are puts, for a total amount of $9,673,252, and 23 are calls, for a total amount of $1,737,873.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $70.0 to $250.0 for Broadcom during the past quarter.

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 $70.0 to $250.0, over the past month.

Broadcom 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

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.

In light of the recent options history for Broadcom, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Where Is Broadcom Standing Right Now?

• Trading volume stands at 4,268,915, with AVGO's price up by 0.48%, positioned at $146.44.
• RSI indicators show the stock to be is currently neutral between overbought and oversold.
• Earnings announcement expected in 27 days.

What The Experts Say 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 $1002.0.

• An analyst from Cantor Fitzgerald has decided to maintain their Overweight rating on Broadcom, which currently sits at a price target of $200.
• Consistent in their evaluation, an analyst from TD Cowen keeps a Buy rating on Broadcom with a target price of $210.
• An analyst from Rosenblatt persists with their Buy rating on Broadcom, maintaining a target price of $2400.
• An analyst from Oppenheimer has decided to maintain their Outperform rating on Broadcom, which currently sits at a price target of $200.
• Maintaining their stance, an analyst from Cantor Fitzgerald continues to hold a Overweight rating for Broadcom, targeting a price of $2000.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Broadcom with Benzinga Pro for real-time alerts.