What the Options Market Tells Us About Broadcom

Financial giants have made a conspicuous bearish move on Broadcom. Our analysis of options history for Broadcom AVGO revealed 44 unusual trades.

Delving into the details, we found 34% of traders were bullish, while 45% showed bearish tendencies. Out of all the trades we spotted, 4 were puts, with a value of $145,211, and 40 were calls, valued at $3,126,540.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $24.0 to $275.0 for Broadcom over the recent three months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Broadcom options trades today is 5045.86 with a total volume of 65,556.00.

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 $24.0 to $275.0 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.

Broadcom's Current Market Status

• Currently trading with a volume of 7,654,628, the AVGO's price is up by 1.74%, now at $236.4.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 72 days.

Expert Opinions on Broadcom

5 market experts have recently issued ratings for this stock, with a consensus target price of $239.0.

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20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * Maintaining their stance, an analyst from Deutsche Bank continues to hold a Buy rating for Broadcom, targeting a price of $240. * Maintaining their stance, an analyst from Piper Sandler continues to hold a Overweight rating for Broadcom, targeting a price of $250. * An analyst from Barclays persists with their Overweight rating on Broadcom, maintaining a target price of $205. * An analyst from Evercore ISI Group persists with their Outperform rating on Broadcom, maintaining a target price of $250. * An analyst from B of A Securities persists with their Buy rating on Broadcom, maintaining a target price of $250.

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.