High-rolling investors have positioned themselves bearish 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 8 options trades for Broadcom. This is not a typical pattern.
The sentiment among these major traders is split, with 12% bullish and 50% bearish. Among all the options we identified, there was one put, amounting to $51,830, and 7 calls, totaling $478,206.
Projected Price Targets
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $190.0 to $235.0 for Broadcom over the recent three months.
Insights into Volume & Open Interest
In today's trading context, the average open interest for options of Broadcom stands at 3190.8, with a total volume reaching 565.00. 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 $190.0 to $235.0, throughout the last 30 days.
Broadcom Call and Put Volume: 30-Day Overview
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| AVGO | CALL | TRADE | NEUTRAL | 02/14/25 | $9.6 | $9.05 | $9.35 | $230.00 | $187.0K | 1.8K | 1 |
| AVGO | CALL | SWEEP | NEUTRAL | 02/07/25 | $2.71 | $2.69 | $2.7 | $235.00 | $70.0K | 7.4K | 340 |
| AVGO | CALL | TRADE | BULLISH | 02/14/25 | $11.4 | $11.0 | $11.4 | $225.00 | $57.0K | 1.7K | 101 |
| AVGO | CALL | SWEEP | BEARISH | 02/07/25 | $2.71 | $2.64 | $2.64 | $235.00 | $53.6K | 7.4K | 340 |
| AVGO | PUT | SWEEP | BEARISH | 02/21/25 | $7.1 | $7.1 | $7.1 | $230.00 | $51.8K | 2.9K | 113 |
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.
Current Position of Broadcom
- With a volume of 1,855,928, the price of AVGO is up 3.39% at $229.96.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 29 days.
Expert Opinions 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 $255.33333333333334.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * Maintaining their stance, an analyst from Mizuho continues to hold a Outperform rating for Broadcom, targeting a price of $260. * An analyst from Barclays has decided to maintain their Overweight rating on Broadcom, which currently sits at a price target of $260. * An analyst from Morgan Stanley has decided to maintain their Overweight rating on Broadcom, which currently sits at a price target of $246.
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.
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