52-Week High Alert: Trading today’s movement in BROADCOM LIMITED ORDINARY SHARES $AVGO

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Quantchabot has detected a promising Bull Put Spread trade opportunity for BROADCOM LIMITED ORDINARY SHARES (AVGO) for the 27-Nov-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

AVGO was recently trading at $380.27 and has an implied volatility of 33.19% for this period. Based on an analysis of the options available for AVGO expiring on 27-Nov-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $380.34-$428.12 at expiration. In this scenario, the average linear return for the trade would be 57.04%.

52 week high: BROADCOM LIMITED ORDINARY SHARES recently reached a new 52-week high at $382.50. AVGO had traded in the range $155.67-$378.96 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if AVGO maintains its current direction and does not revert back to pricing on the bearish side of $380.27 on 27-Nov-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if BROADCOM LIMITED ORDINARY SHARES closes at or above $379.60 on 27-Nov-2020. Based on our risk-neutral analysis, there is a 50.66% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.