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 270 extraordinary options activities for Broadcom. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 46% leaning bullish and 53% bearish. Among these notable options, 131 are puts, totaling $9,333,102, and 139 are calls, amounting to $11,135,609.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $460.0 to $1280.0 for Broadcom over the recent three months.
Analyzing Volume & Open Interest
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 $460.0 to $1280.0, over the past month.
Broadcom 30-Day Option Volume & Interest Snapshot
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| AVGO | CALL | SWEEP | BEARISH | 12/15/23 | $910.00 | $153.7K | 1.0K | 333 |
| AVGO | CALL | SWEEP | BEARISH | 12/15/23 | $910.00 | $151.2K | 1.0K | 270 |
| AVGO | CALL | SWEEP | BULLISH | 12/15/23 | $910.00 | $145.0K | 1.0K | 336 |
| AVGO | CALL | SWEEP | BULLISH | 12/01/23 | $915.00 | $134.3K | 174 | 4 |
| AVGO | CALL | SWEEP | BULLISH | 12/01/23 | $915.00 | $120.1K | 174 | 23 |
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.
Following our analysis of the options activities associated with Broadcom, we pivot to a closer look at the company's own performance.
Broadcom's Current Market Status
- With a trading volume of 2,889,218, the price of AVGO is down by -1.41%, reaching $981.66.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 16 days from now.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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