Broadcom Looks Cheap Ahead of Its July 15 Stock Split - Shorting AVGO Puts Is a Good Play

Broadcom Inc (AVGO) will do a 10-for-1 stock split next Monday (July 15). Based on its strong FCF and price targets, AVGO stock looks cheap. Selling short out-of-the-money put options is a way to play this and gain extra income.

I discussed this in my last Barchart article on June 14, “Broadcom, an AI Chip Stock, Just Split Its Shares Like Nvidia and Looks Cheap.” AVGO stock was at $1,716.77 and I suggested shorting the $1,640 strike price put expiring July 5 would be profitable.