Broadcom (AVGO) Chart Analyzed, Options Trade Proposed in Wake of Today’s Rally

Larry Ramer

Tue, Apr 8, 2025, 9:54 AM 2 min read

After Broadcom (AVGO) announced a caller $10 cardinal stock repurchase programme precocious yesterday, sparking a rally by the sanction today, Schwab Network analyzed the stock's illustration and projected a bullish options commercialized involving it.

A technician moving astatine a magnified microscope, processing a caller integrated circuit.

A Look astatine AVGO's Chart

"Broadcom is holding up amended than the broader marketplace this twelvemonth and outperforming its sector," said Rick Ducat, Schwab's Lead Market Technician. However, AVGO is beneath its 3 main moving averages, portion its "exponential moving averages are besides trending down," Ducat said.

AVGO has a "potential enactment constituent adjacent $135," and today's rally could "set the signifier for a caller upward trend" by AVGO, Ducat reported.

A Bullish Options Trade

Commentator Tom White projected an options commercialized that helium said would exploit AVGO's rally and its comparatively precocious volatility. Specifically, helium suggested buying telephone options with a $165 onslaught terms that expire connected May 16, and helium projected selling telephone options that person a $185 onslaught terms and expire connected April 17. The nett premium for the options play is $12, helium said.

The Recent Price Action of AVGO Stock

In the past month, the banal fell 15%, portion the shares person tumbled 30% successful the past 3 months.

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