Traders are pricing a $43 move in AVGO shares after Wednesday’s earnings, reflecting a potential 9% shift toward the $500 level.
Broadcom’s June 5 weekly options are pricing in a roughly 9% move following the chipmaker’s earnings report after Wednesday’s close. With shares closing at $481.57 on Tuesday, near-the-money straddles at 480, 482.5, and 485 levels were valued at about $43 each.
The implied volatility suggests traders anticipate significant post-earnings volatility, with the $500 mark as a key resistance level. Prior sessions showed muted movement, but options activity indicates heightened expectations for a breakout or pullback.
No immediate market reaction was detailed, though the options pricing reflects trader positioning ahead of the report.