Broadcom Unusual Options Activity

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

The general mood among these heavyweight investors is divided, with 30% leaning bullish and 69% bearish. Among these notable options, 22 are puts, totaling $1,247,519, and 46 are calls, amounting to $3,109,210.

Projected Price Targets

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 $1400.0 for Broadcom over the last 3 months.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Broadcom options trades today is 266.73 with a total volume of 3,254.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Broadcom's big money trades within a strike price range of $450.0 to $1400.0 over the last 30 days.

Broadcom Call and Put Volume: 30-Day Overview

Biggest Options Spotted:

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.

Present Market Standing of Broadcom

• Trading volume stands at 1,098,901, with AVGO's price up by 0.07%, positioned at $1126.96.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 63 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 $1055.0.

• 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 Truist Securities continues to hold a Buy rating for Broadcom, targeting a price of $1015.
• An analyst from Rosenblatt has decided to maintain their Buy rating on Broadcom, which currently sits at a price target of $1160.
• An analyst from Rosenblatt downgraded its action to Buy with a price target of $1000.

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.