How Traders Can Play Broadcom Stock’s Bull Run With Less Upfront Money

Broadcom stock is up 25% year to date, and many on Wall Street are saying that there’s more to come. Option traders who want to capitalize on the stock’s performance are likely buying calls or selling puts – both perfectly valid strategies during a bullish run. 

However, long calls can be expensive when volatility is high, and short puts leave you on the hook to buy 100 shares of the stock if the trade doesn’t go your way. That’s $43,000+ for each contract – and not everyone has buying power like that. 

So, how can traders with smaller accounts play Broadcom’s bull run? 

Well, they can use the bull put. Let me show you how. 

What is a bull put spread?

A bull put or a put credit spread is an options trading strategy that traders use to earn premium when the stock stays above a certain level. As such, the strategy is usually used during moderately…