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 13 extraordinary options activities for Broadcom. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 23% leaning bullish and 76% bearish. Among these notable options, 3 are puts, totaling $120,857, and 10 are calls, amounting to $569,770.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $500.0 to $1150.0 for Broadcom over the recent three months.

Volume & Open Interest Development

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 $500.0 to $1150.0 in the last 30 days.

Broadcom Call and Put Volume: 30-Day Overview

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 iPhone. It counts Apple as a large customer at roughly one fifth of sales. In software, it sells infrastructure and security software to large 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.

Broadcom's Current Market Status

• With a trading volume of 54,454, the price of AVGO is down by -0.73%, reaching $950.57.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 24 days from now.

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.