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

Financial giants have made a conspicuous bearish move on Broadcom. Our analysis of options history for Broadcom AVGO revealed 77 unusual trades.

Delving into the details, we found 33% of traders were bullish, while 66% showed bearish tendencies. Out of all the trades we spotted, 19 were puts, with a value of $864,972, and 58 were calls, valued at $3,354,852.

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 $450.0 to $1480.0 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 507.3, with a total volume reaching 137,206.00. 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 $450.0 to $1480.0, throughout the last 30 days.

Broadcom Option Volume And Open Interest Over Last 30 Days

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 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

• Trading volume stands at 3,681,315, with AVGO's price up by 3.52%, positioned at $1145.44.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 76 days.

What The Experts Say On Broadcom

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $1095.0.

• Consistent in their evaluation, an analyst from Keybanc keeps a Overweight rating on Broadcom with a target price of $1200.
• An analyst from TD Cowen has decided to maintain their Market Perform rating on Broadcom, which currently sits at a price target of $1000.
• An analyst from Citigroup downgraded its action to Buy with a price target of $1100.
• Maintaining their stance, an analyst from Rosenblatt continues to hold a Buy rating for Broadcom, targeting a price of $1160.
• An analyst from Truist Securities persists with their Buy rating on Broadcom, maintaining a target price of $1015.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Broadcom options trades with real-time alerts from Benzinga Pro.