Signal: This Semiconductor Stock Has Room to Run

Core Viewpoint - Broadcom Inc (NASDAQ:AVGO) has experienced significant stock movement, recently reaching a market cap of $1 trillion and a record high of $265.43, but faced a 5% drop following a revenue forecast that fell short of estimates [2][4] Group 1: Stock Performance - The stock has shown resilience, poised to add 1.2% this week and remains close to its peak [2] - Historically low implied volatility (IV) has been noted, which has previously indicated bullish trends for the stock [3] - Data indicates that Broadcom stock was higher a month later 75% of the time, averaging a 3% return during that period [4] Group 2: Support Levels - The $250 level is identified as a potential support area, having been significant in previous months [5] - The ascending 20-day moving average has provided a cushion for the stock, remaining unbreached on a closing basis since April [5] Group 3: Options Activity - There has been an increase in put options activity, with a 50-day put/call volume ratio of 0.59, ranking higher than 91% of readings from the past year [7] - Despite calls still outnumbering puts, the high percentile indicates a rising trend in put activity [7] - The Schaeffer's Volatility Scorecard (SVS) for AVGO is high at 84 out of 100, suggesting that the stock has historically exceeded expectations, benefiting options buyers [8]