Broadcom Options Trading: A Deep Dive into Market Sentiment

Broadcom Limited -2.48% Pre

Broadcom Limited





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Investors with a lot of money to spend have taken a bullish stance on Broadcom (NASDAQ: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 16 uncommon options trades for Broadcom.

This isn't normal.

The overall sentiment of these big-money traders is split between 56% bullish and 43%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $217,020, and 10 are calls, for a total amount of $1,125,719.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $800.0 to $1140.0 for Broadcom during the past quarter.

Volume & Open Interest Trends

In terms of liquidity and interest, the mean open interest for Broadcom options trades today is 345.2 with a total volume of 991.00.

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 $800.0 to $1140.0 over the last 30 days.

Broadcom Option Volume And Open Interest Over Last 30 Days

Options Call Chart

Noteworthy Options Activity:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
AVGO CALL TRADE NEUTRAL 01/05/24 $1090.00 $658.6K 23 2
AVGO CALL TRADE BULLISH 02/16/24 $800.00 $131.8K 28 4
AVGO CALL SWEEP BULLISH 01/05/24 $1135.00 $72.2K 263 9
AVGO CALL SWEEP BEARISH 01/19/24 $1125.00 $54.3K 77 3
AVGO CALL SWEEP BEARISH 03/15/24 $1140.00 $52.5K 172 3

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.

After a thorough review of the options trading surrounding Broadcom, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of Broadcom

  • With a trading volume of 264,657, the price of AVGO is up by 0.01%, reaching $1122.53.
  • Current RSI values indicate that the stock is may be overbought.
  • Next earnings report is scheduled for 62 days from now.

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.

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