Bears Tripled Their Money With Broadcom Puts

The equity is pacing for its first win in seven sessions

Jake Scott

Deputy Editor

Nov 18, 2024 at 12:04 PM

AVGO

Expiration Week Countdown subscribers just tripled their money with our Broadcom Inc (NASDAQ:AVGO) November 184 put recommendation. This trade hit inboxes on Sunday, Nov. 10, and we closed our position on Friday, Nov. 15, meaning it took our subscribers just a week to score a 200% profit.

At the time of our recommendation, the semiconductor stock had just stalled at its all-time high levels from June. AVGO was also trading into a stack of call open interest (OI) between the 180- and 190-strike, and we predicted a break below $180 could potentially flush prices toward standard expiration, with maximum pain around $170.

Broadcom stock was last seen 0.3% higher at $165.28, though it earlier traded as low as $162.37. Today's slim gains have the shares on track to snap their six-day losing streak, meaning they failed to turn in a win since our recommendation. Not only did shares of the chip manufacturer break below the $180 level, they're now well beneath $170 as well.

AVGO Chart November 182024

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