The security is trading at record highs
Broadcom Inc (NASDAQ:AVGO) stock is up 21.7% to trade at a record high of $219.89 at last check, after the semiconductor giant announced a fiscal-fourth-quarter profit beat. The company also reported a revenue miss, but said it’s working with three big cloud customers to develop custom artificial intelligence (AI) chips. Broadcom earlier crossed the $1 trillion market valuation, with AI revenue more than tripling for the quarter.
The equity attracted no fewer than 19 price-target hikes in response, including one from Benchmark to $255 from $210. Boasting a 91.5% year-to-date lead, the shares are today pacing for their biggest single-day percentage pop ever and best weekly gain since June.
Options traders lean overwhelmingly bullish. This is per AVGO’s 50-day call/put volume ratio of 2.73 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 99% of annual readings.
Drilling down to today’s options activity, 522,000 calls and 233,000 puts have crossed the tape, which is 12 times the volume typically seen at this point. Positions are being opened at the most popular contract, which is the weekly 12/13 220-strike call. Those positions will expire at the close.