Investors in Broadcom Inc (AVGO) can now take advantage of new options expiring on November 15. With 144 days until expiration, these new contracts offer opportunity for option sellers to earn a higher premium due to the time value factor. Stock Options Channel has highlighted one put and one call contract for investors to consider. The put contract at a strike price of $1,600.00 with a bid of $120.20 could be an attractive option for those interested in purchasing AVGO stock. The analytics suggest a 62% chance of the put contract expiring worthless, providing a potential 7.51% return on the cash commitment.
On the buy side, a call contract at a strike price of $1,700.00 with a bid of $149.30 presents an opportunity for investors to generate a total return of 13.03% if shares are sold at expiration. The analytics indicate a 47% chance of the covered call contract expiring worthless, offering a potential 9.13% increase in additional return to the investor if that happens.
The implied volatility for both the sell and buy contracts is around 40%, while the real volatility over the last twelve months stands at 37%. Investors looking for more option contract ideas can explore StockOptionsChannel.com for further insights. It is important to consider the historical trading history of Broadcom Inc and study the fundamentals of the business before making any decisions in the options market.
Overall, these new options for AVGO provide investors with opportunities to capitalize on potential market movements and generate returns through strategic option trading.
Article Source
https://www.nasdaq.com/articles/november-15th-options-now-available-broadcom-avgo