Huge, Unusual Options Activity in Broadcom Underlines the Value of AVGO Stock

Large and unusual size in the activity in Broadcom, Inc. (AVGO)) The options mode highlights the value of AVGO shares. Investors jumped to Aveo ovens, putting the expiration of Friday. Its last strong results and an agreement with Openai show that AVGO can be more than that.

AVGO He is $ 369.77 In the middle of the day on Wednesday, September 10. This increased by 24 % from September 2 ($ 298.24), Immediately before the results of the Q2V on September 4.

Moreover, in calling her profits, according to CNBC, Broadcom said it is collaborating with Openai to provide them with semiconductors AI.

Discuss the profits, free cash flow (FCF), and Broadcom’s FCF margin in the Barchart article on September 5 (“(“The free cash flow of Broadcom with FCF margins is higher, which means 25 % higher for AVGO arrow. “))

I set the target price in $ 386.30 Based on analyst revenue expectations, FCF’s grace is 43.5 %, and the return of the return by 1.85 %. AVGO shares are almost now.

But since then, analysts raised their revenue expectations. For example, analysts have now set revenue estimates in the fiscal year 2026 (ending 2026) for $ 83.68 billion.

Therefore, using a 43.5 % FCF margin, this means that FCF can reach $ 36.4 billion (I.e. 83.68BX $ 0.435). Using a 1.85 % FCF revenue, this puts about $ 2 trillion in the market:

36.4B / 0.0185 $ = 1968 billion dollars (That is, 1.968 trillion dollars) MKT CAP

This is still the highest $ 230 million of the maximum today market of $ 1738 billion, according to Yahoo! finance. In other words, its value can be +13.2 % more:

$ 369.77 x 1.132 = 418.58 dollars The target price

This is the new target price. Analysts are not there yet. For example, Anachart.com says 28 analysts have a average target price $ 370.90Higher than today’s price.

This may be the reason why there is a lot of activity in AVGO options today. Some investors may feel that stocks have been topped.

For example, the unusual stock options activity report shows that more than 11,700 options were circulated at the 360 ​​-dollar exercise price for the contract expiration contract on Friday, September 12.