Short-Term Bulls Eye Rallying Broadcom Corporation (BRCM)

Broadcom Corporation (NASDAQ:BRCM) has rallied 2.7% out of the gate to hover near $42.25, and hit a fresh three-year peak of $42.44 just moments ago, after receiving an upgrade to "buy" from "neutral" at Goldman Sachs -- which also lifted its price target to $48 from $40. Option traders are responding, too, with calls crossing at five times the expected intraday rate, and the stock's 30-day at-the-money implied volatility (IV) has spiked 3.3% to 23.8% -- signaling elevated demand for short-term strikes.

Getting into the details, BRCM's weekly 11/28 42.50-strike call is most active, with 2,442 contracts on the tape. The majority have traded at the ask price, IV is edging higher, and volume outstrips open interest. In short, it's safe to assume bullish bets are being bought to open -- a theory confirmed by data from Trade-Alert. What's more, the November 43 call is seeing similar buy-to-open activity.

In a nutshell, today's call buyers are expecting BRCM shares to rally past $42.50 and $43 by the options' respective expiration dates, at the end of this week and next week. This would place the stock deeper into multi-year-high territory.

Elsewhere, Broadcom Corporation (NASDAQ:BRCM) announced plans to build a new corporate campus in Irvine, California. Initially, the campus will be approximately 1.1 million square feet, with the ability to expand to 2 million square feet.