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 27 uncommon options trades for Broadcom.
This isn't normal.
The overall sentiment of these big-money traders is split between 44% bullish and 33%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $835,112, and 20 are calls, for a total amount of $1,373,393.
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 $1170.0 and $1960.0 for Broadcom, spanning the last three months.
Analyzing Volume & Open Interest
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Broadcom's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Broadcom's significant trades, within a strike price range of $1170.0 to $1960.0, over the past month.
Broadcom Call and Put Volume: 30-Day Overview
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| AVGO | PUT | SWEEP | NEUTRAL | 06/28/24 | $7.9 | $5.7 | $6.9 | $1550.00 | $427.7K | 1.9K | 3 |
| AVGO | CALL | SWEEP | NEUTRAL | 07/19/24 | $53.0 | $49.7 | $51.49 | $1630.00 | $154.7K | 420 | 0 |
| AVGO | CALL | SWEEP | NEUTRAL | 07/05/24 | $65.5 | $63.3 | $65.5 | $1550.00 | $137.5K | 285 | 15 |
| AVGO | PUT | SWEEP | BULLISH | 06/28/24 | $72.6 | $68.0 | $68.0 | $1655.00 | $136.0K | 287 | 0 |
| AVGO | CALL | TRADE | BEARISH | 09/20/24 | $134.6 | $131.0 | $131.0 | $1600.00 | $131.0K | 2.9K | 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.
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
- With a trading volume of 87,827, the price of AVGO is up by 0.04%, reaching $1592.64.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 63 days from now.
What Analysts Are Saying About Broadcom
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $1809.0.
- In a cautious move, an analyst from Melius Research downgraded its rating to Buy, setting a price target of $1850.
- Consistent in their evaluation, an analyst from Truist Securities keeps a Buy rating on Broadcom with a target price of $2045.
- An analyst from TD Cowen has decided to maintain their Buy rating on Broadcom, which currently sits at a price target of $1750.
- Maintaining their stance, an analyst from Citigroup continues to hold a Buy rating for Broadcom, targeting a price of $1750.
- An analyst from Rosenblatt has decided to maintain their Buy rating on Broadcom, which currently sits at a price target of $1650.
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.