Investors with a lot of money to spend have taken a bearish stance on Broadcom AVGO.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with AVGO, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 41 uncommon options trades for Broadcom.
This isn't normal.
The overall sentiment of these big-money traders is split between 31% bullish and 48%, bearish.
Out of all of the special options we uncovered, 16 are puts, for a total amount of $984,754, and 25 are calls, for a total amount of $1,927,135.
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 $100.0 and $210.0 for Broadcom, spanning the last three months.
Analyzing Volume & Open Interest
Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $100.0 to $210.0 in the last 30 days.
Broadcom Option Volume And Open Interest Over Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| AVGO | CALL | TRADE | BEARISH | 09/06/24 | $65.2 | $64.6 | $64.6 | $100.00 | $645.9K | 683 | 250 |
| AVGO | PUT | SWEEP | BEARISH | 08/30/24 | $3.6 | $3.5 | $3.6 | $160.00 | $318.6K | 2.3K | 1.7K |
| AVGO | CALL | SWEEP | BULLISH | 09/06/24 | $4.2 | $4.1 | $4.16 | $170.00 | $208.5K | 6.2K | 876 |
| AVGO | CALL | TRADE | BULLISH | 01/17/25 | $33.8 | $33.3 | $33.6 | $140.00 | $168.0K | 5.4K | 50 |
| AVGO | PUT | SWEEP | BEARISH | 09/20/24 | $3.7 | $3.6 | $3.7 | $148.00 | $92.5K | 1.3K | 262 |
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.
Broadcom's Current Market Status
- With a volume of 4,345,602, the price of AVGO is down -3.02% at $161.33.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 10 days.
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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