Spotlight on Broadcom: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bearish 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 13 uncommon options trades for Broadcom.

This isn't normal.

The overall sentiment of these big-money traders is split between 38% bullish and 61%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $141,657, and 9 are calls, for a total amount of $575,274.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $610.0 to $1000.0 for Broadcom over the last 3 months.

Volume & Open Interest Development

In today's trading context, the average open interest for options of Broadcom stands at 702.75, with a total volume reaching 134.00. 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 $610.0 to $1000.0, throughout the last 30 days.

Broadcom 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

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.

Where Is Broadcom Standing Right Now?

• Trading volume stands at 385,532, with AVGO's price down by -0.35%, positioned at $956.2.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 20 days.

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.