This Is What Whales Are Betting On Broadcom

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

The general mood among these heavyweight investors is divided, with 36% leaning bullish and 63% bearish. Among these notable options, 9 are puts, totaling $431,768, and 29 are calls, amounting to $2,229,988.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $660.0 and $1480.0 for Broadcom, spanning the last 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 $660.0 to $1480.0, over the past month.

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.

Broadcom's Current Market Status

• Currently trading with a volume of 382,719, the AVGO's price is down by -0.19%, now at $1222.0.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 24 days.

Expert Opinions on Broadcom

In the last month, 3 experts released ratings on this stock with an average target price of $1308.3333333333333.

• An analyst from Cantor Fitzgerald has revised its rating downward to Overweight, adjusting the price target to $1300.
• An analyst from Goldman Sachs downgraded its action to Buy with a price target of $1325.
• An analyst from Cantor Fitzgerald downgraded its action to Overweight with a price target of $1300.

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.