Analysts Keep Hiking Broadcom Price Targets, But AVGO Is Flat - Shorting AVGO Puts Is an Attractive Play

Analysts have been raising their price targets on chip maker Broadcom Inc. (AVGO) since it released its fiscal Q3 results on Sept. 2. Two attractive plays are to sell cash-secured out-of-the-money AVGO puts as well as put credit spreads. This article will discuss both plays.

AVGO is at $352.85 as of late Friday, Sept. 25, slightly lower than right after its earnings results ($357.16 on Sept. 3). But AVGO is still well below its Aug. 7 peak of $476.66.