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Broadcom Inc (AVGO) stock could be too cheap here based on its strong free cash flow (FCF) generation. Broadcom is set to release earnings in just over 2 weeks. One way to play this is to short out-of-the-money (OTM) put options.
AVGO stock closed at $165.72 on Friday, Aug. 16, off $17.17 from its June 17 peak of $182.89, or -9.38%. This is after rising 21.6% from a recent low of $136.27 on Aug. 7.