Broadcom's Options: A Look at What the Big Money is Thinking

Deep-pocketed investors have adopted a bearish approach towards Broadcom AVGO, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in AVGO usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 12 extraordinary options activities for Broadcom. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 33% leaning bullish and 58% bearish. Among these notable options, 6 are puts, totaling $972,195, and 6 are calls, amounting to $430,490.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $150.0 and $230.0 for Broadcom, spanning the last three months.

Insights into 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 $150.0 to $230.0 in the last 30 days.

Broadcom Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

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.

Following our analysis of the options activities associated with Broadcom, we pivot to a closer look at the company's own performance.

Current Position of Broadcom

• Currently trading with a volume of 2,508,062, the AVGO's price is down by -0.72%, now at $178.08.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 43 days.

What The Experts Say On Broadcom

A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $216.66666666666666.

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20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Mizuho has decided to maintain their Outperform rating on Broadcom, which currently sits at a price target of $220. * Maintaining their stance, an analyst from Truist Securities continues to hold a Buy rating for Broadcom, targeting a price of $205. * An analyst from Cantor Fitzgerald has decided to maintain their Overweight rating on Broadcom, which currently sits at a price target of $225.

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.