The Big 3: AVGO, LLY, GS

Market Overview - The market is experiencing continued sector rotation, with the S&P 500 advanced decline line showing a balanced 50/50 performance, indicating potential volatility ahead [2][3] - The S&P 500 is down over 0.5%, primarily affected by the technology sector, suggesting a shift of investments between sectors like financials and energy [3] Broadcom (AVGO) - Broadcom shares are under slight pressure, down about 0.25%, despite reporting record revenue for Q3 [4] - A bearish outlook is presented due to concerns over AI spending and profitability, with significant investments in AI and server farms raising questions about future upside potential [5][7] - A bearish trade strategy involves buying 310 puts and selling 300 puts, creating a $10 wide put spread for a $263 debit [7] Eli Lilly (LLY) - Eli Lilly is constructing a $6.5 billion plant for a new obesity weight loss pill, but the stock is down nearly 20% year-to-date and flat over the last year [15] - A bearish position is taken based on technical analysis, with expectations for the stock to drop back to the $700 range [19] - The trade involves buying a 242.5 put and selling a 240 put, creating a $2.50 wide put spread for a $90 debit [19] Goldman Sachs (GS) - Goldman Sachs has seen a 40% increase year-to-date, with a 10% rise in the last 12 trading sessions, attributed to a slowing economic backdrop [27][28] - A bearish sentiment is expressed, with concerns that the stock's performance does not reflect a genuine improvement in business fundamentals [30] - A bearish trade strategy includes buying 765 puts and selling 755 puts, creating a $10 wide put spread for a $2.70 debit [30]