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 27 extraordinary options activities for Broadcom. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 29% leaning bullish and 59% bearish. Among these notable options, 7 are puts, totaling $475,421, and 20 are calls, amounting to $1,564,697.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $1600.0 to $2000.0 for Broadcom over the recent three months.
Insights into Volume & Open Interest
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Broadcom's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Broadcom's whale activity within a strike price range from $1600.0 to $2000.0 in the last 30 days.
Broadcom Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| AVGO | CALL | SWEEP | BEARISH | 07/19/24 | $51.6 | $50.0 | $50.0 | $1900.00 | $730.0K | 1.5K | 146 |
| AVGO | PUT | SWEEP | BULLISH | 08/16/24 | $107.9 | $103.4 | $103.4 | $1760.00 | $196.4K | 81 | 1 |
| AVGO | CALL | SWEEP | BULLISH | 06/21/24 | $26.5 | $25.0 | $26.5 | $1790.00 | $145.7K | 409 | 239 |
| AVGO | CALL | TRADE | BEARISH | 07/19/24 | $91.9 | $87.0 | $87.0 | $1800.00 | $87.0K | 1.0K | 57 |
| AVGO | PUT | TRADE | NEUTRAL | 06/28/24 | $78.3 | $70.5 | $74.73 | $1800.00 | $74.7K | 355 | 18 |
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.
Having examined the options trading patterns of Broadcom, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Present Market Standing of Broadcom
- Trading volume stands at 295,144, with AVGO's price down by -0.36%, positioned at $1796.01.
- RSI indicators show the stock to be may be overbought.
- Earnings announcement expected in 70 days.
Professional Analyst Ratings for Broadcom
In the last month, 5 experts released ratings on this stock with an average target price of $1732.0.
- Maintaining their stance, an analyst from TD Cowen continues to hold a Buy rating for Broadcom, targeting a price of $1750.
- Consistent in their evaluation, an analyst from Rosenblatt keeps a Buy rating on Broadcom with a target price of $1650.
- Reflecting concerns, an analyst from Citigroup lowers its rating to Buy with a new price target of $1560.
- An analyst from Bernstein persists with their Outperform rating on Broadcom, maintaining a target price of $1950.
- An analyst from Citigroup persists with their Buy rating on Broadcom, maintaining a target price of $1750.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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