What's Dragging This Chip Stock Lower

Options bears are blasting AVGO today

Deputy Editor
Sep 21, 2023 at 10:32 AM
facebook X logo linkedin

Tech publication The Information reported that Alphabet's (GOOGL) Google is thinking about dropping its artificial intelligence (AI) chip supplier Broadcom Inc (NASDAQ:AVGO) as early as 2027. The company is looking to design the chips in-house, though it's also worked to replace Broadcom with Marvell Technology (MRVL) as its supplier for Ethernet switches chips.

AVGO is down 3.7% to trade at $799.93 after the news. What's more, the stock just broke below long-term support at its 100-day moving average, though it still stands more than 40% higher in 2023. 

Puts are outpacing calls in the options pits today. So far, 21,00 bearish bets have crossed the tape versus 11,00 bullish, with overall volume running at double the intraday average amount. New positions are opening at the top four contracts, led by the weekly 9/22 800-strike put.

This penchant for pessimism is nothing new, according to Broadcom stock's Schaeffer's put/call open interest (SOIR) ratio of 1.334. This ratio sits higher than 74% of readings from the past 12 months.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI