Exploring Broadcom Options Trading and Market Sentiment

Investors are showing a confident and optimistic sentiment towards Broadcom (NASDAQ: AVGO), a trend that traders in the market should take notice of. Recent observations tracked by Benzinga revealed notable movements in Broadcom options, indicating significant actions by these well-funded investors.

Our analysis from today’s options data uncovered a remarkable 177 unique options trades for Broadcom, marking unusually high activity for this stock.

The perspectives among these investors appear to be mixed, with around 50% exhibiting bullish tendencies while 38% are bearish. Among the options involved, there are 62 put options, collectively valued at approximately $4.36 million, and 115 call options worth about $10.64 million.

Projected Price Targets

The trading patterns suggest that significant investors have price targets set between $30 and $330 for Broadcom, reflecting a broad range of potential outcomes over the last three months.

Volume & Open Interest Trends

Analyzing options volume and open interest provides important insights when evaluating a stock's performance.

This analysis helps uncover the liquidity and interest in Broadcom’s options at varying strike prices.

Below, we examine the volume and open interest developments for Broadcom’s options, focusing on whale activity in the range of $30 to $330 over the past 30 days.

Broadcom 30-Day Option Volume & Interest Overview

Noteworthy Options Trades Found:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
AVGO	CALL	SWEEP	BULLISH	01/17/25	$68.6	$68.0	$68.59	$170.00	$2.0M	7.8K	3
AVGO	PUT	TRADE	BEARISH	01/15/27	$63.1	$63.05	$63.1	$270.00	$473.2K	39	400
AVGO	PUT	TRADE	BEARISH	01/15/27	$63.5	$63.25	$63.5	$270.00	$412.7K	39	66
AVGO	CALL	TRADE	BULLISH	02/21/25	$59.05	$58.85	$59.05	$180.00	$124.0K	2.1K	40
AVGO	CALL	TRADE	BULLISH	12/19/25	$56.45	$55.1	$56.07	$210.00	$95.3K	1.7K	133

About Broadcom

Broadcom is recognized as the sixth-largest semiconductor company worldwide, with a substantial presence in multiple software industries, generating over $30 billion in annual revenue. The company offers 17 main semiconductor product lines across various segments, including wireless, networking, broadband, storage, and industrial markets. Although primarily a fabless designer, Broadcom retains some manufacturing capabilities, particularly for specialized products like FBAR filters used in Apple iPhones. In its software division, Broadcom provides virtualization, infrastructure, and security solutions catering to large enterprises, financial sectors, and governmental bodies. The company has been shaped by mergers, bringing together different entities such as legacy Broadcom, Avago Technologies, Brocade, CA Technologies, and Symantec.

With the recent activity in options trading, it's a fitting moment to analyze Broadcom’s actual business performance.

Current Performance of Broadcom

• Broadcom currently has a trading volume of 17,266,937, with the stock price at $236.88, reflecting a decline of 2.01%.
• Current Relative Strength Index (RSI) values suggest that the stock might be overbought.
• The next earnings report for the company is anticipated in 66 days.

Expert Insights on Broadcom

Recently, five analysts issued ratings for Broadcom, reporting an average target price of $222.6.

Notable Options Activity: Investment Insights

The Unusual Options section can help identify potential movers in the market before they emerge. Here’s a summary of several analysts’ observations on Broadcom:

• An analyst from Citigroup rates Broadcom as a Buy, with a target price of $205.
• Another analyst from Citigroup maintains a Buy rating with a price target of $220.
• According to an analyst from Baird, Broadcom is rated as Outperform, with a target price of $210.
• Truist Securities continues to rate Broadcom as Buy, with a heightened target price of $245.
• Lastly, a Morgan Stanley analyst retains an Overweight rating for Broadcom, targeting it at $233.

Options trading carries additional risk compared to regular stock trading but also offers greater profit potential. Experienced options traders reduce this risk by continually educating themselves, managing their positions, and closely monitoring multiple indicators.

To keep informed about the latest options trades in Broadcom, various tools can provide timely alerts for real-time options trades.

Broadcom, Options, Market