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Call Traders Cheer Resurgent Broadcom Stock

Broadcom suffered a 10.4% post-earnings drop earlier this month

Deputy Editor
Sep 23, 2024 at 2:03 PM
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Earlier this month, semiconductor stalwart Broadcom Inc (NASDAQ:AVGO) shed by 10.4% after a dismal earnings report. AVGO responded by rattling off two straight weekly wins, and on Friday finally filled that post-earnings bear gap while last closing at its highest level since July. 

Despite the blip earlier this month, AVGO remains a favorite amongst call traders. The equity found a place on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that attracted the most weekly options volume in the last two weeks. Over the last 10 sessions, Broadcom stock saw more than 3.1 million calls and 1.7 million puts exchanged, with the most activity taking place at the September 170 call.

Most Active Options September 232024

Broadcom has gained steadily over the last 12 months, and now boasts a 105.6% year-over-year lead. And despite the aforementioned pullback, the shares have support in place at their ascending 200-day moving average. 

 

AVGO Chart 2 September 232024

It looks like a great time to get in on the action with options. The stock's Schaeffer's Volatility Index (SVI) of 39% sits in the relatively low 24th percentile of its annual range, meaning it currently sports attractively priced premiums.

 

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