The $10 billion share repurchase program is authorized through year-end
Semiconductor stock Broadcom Inc (NASDAQ:AVGO) is up 6.2% to trade at $163.62 ahead of the open, after announcing a massive $10 billion share repurchase program authorized through year-end. CEO Hock Tan called the move a reflection of the board’s confidence in Broadcom’s “diversified semiconductor and infrastructure software product franchises.”
Today’s jump pivots from what’s been a rough stretch for AVGO, which is down 33.5% year-to-date coming into the session, with six weekly losses over the last seven. The stock recently hit a floor at the $140 region -- its lowest level since September -- and is now attempting to reclaim support at its 320-day moving average.
Options traders haven’t been shy about expressing their skepticism. Broadcom stock’s 10-day put/call volume ratio across the ISE, CBOE, and PHLX ranks in the 99th percentile of its annual range, pointing to an unusually strong appetite for bearish bets.
Options are looking affordable, too. The stock’s Schaeffer’s Volatility Index (SVI) of 92% ranks in just the 30th percentile of the past year, meaning options are relatively cheap at the moment.