A Closer Look at Broadcom's Options Market Dynamics

Author: Benzinga Insights | July 12, 2024 11:46am

Financial giants have made a conspicuous bearish move on Broadcom. Our analysis of options history for Broadcom (NASDAQ:AVGO) revealed 67 unusual trades.

Delving into the details, we found 34% of traders were bullish, while 35% showed bearish tendencies. Out of all the trades we spotted, 11 were puts, with a value of $501,745, and 56 were calls, valued at $3,904,400.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $1100.0 to $2500.0 for Broadcom over the recent three months.

Analyzing 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 $1100.0 to $2500.0 in the last 30 days.

Broadcom Call and Put Volume: 30-Day Overview

Biggest Options Spotted:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
AVGO	CALL	SWEEP	BEARISH	07/26/24	$69.0	$67.9	$67.8	$1690.00	$346.5K	174	155
AVGO	CALL	TRADE	BULLISH	09/20/24	$305.0	$305.0	$305.0	$1450.00	$305.0K	211	0
AVGO	CALL	TRADE	BEARISH	07/26/24	$188.0	$183.0	$183.0	$1540.00	$219.6K	35	0
AVGO	CALL	TRADE	BEARISH	07/26/24	$61.8	$58.2	$59.16	$1710.00	$177.4K	374	272
AVGO	CALL	TRADE	BULLISH	07/26/24	$56.3	$56.3	$56.3	$1710.00	$168.9K	374	125

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.

Where Is Broadcom Standing Right Now?

• With a volume of 974,177, the price of AVGO is up 0.66% at $1717.22.
• RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
• Next earnings are expected to be released in 48 days.

What The Experts Say On Broadcom

5 market experts have recently issued ratings for this stock, with a consensus target price of $1950.0.

• Maintaining their stance, an analyst from Rosenblatt continues to hold a Buy rating for Broadcom, targeting a price of $1650.
• Consistent in their evaluation, an analyst from Goldman Sachs keeps a Buy rating on Broadcom with a target price of $1850.
• Maintaining their stance, an analyst from Rosenblatt continues to hold a Buy rating for Broadcom, targeting a price of $2400.
• An analyst from Wells Fargo has decided to maintain their Equal-Weight rating on Broadcom, which currently sits at a price target of $1700.
• An analyst from B of A Securities has revised its rating downward to Buy, adjusting the price target to $2150.

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.

Posted In: AVGO