Bought 2 Broadcom Calls

I posted about a month ago that Broadcom (AVGO) was doing a 10:1 split. As I write the stock is in the area of 1720. The stock will split after the close on Friday, tomorrow. It will start trading at the split adjusted price on Monday, July 15th. As part of my Stock Split Strategy I just bought 2 options contracts on AVGO.

I bought 2 AVGO 7/19/24 $1730 Calls for a premium of $47. When the market opens on Monday I will own 20 contracts of AVGO. Please notice my Expiration Date. It is July 19th. This position will expire next Friday. I plan on selling all these contracts on Monday the 15th, which is the Ex Date, the day of the split. Hopefully the stock pops and I can make a nice profit in a few days.

Buy to Open 2 AVGO 7/19/24  $1730.00 C @ $47.00

After the split I will be buying a few options contracts with AVGO with the Expiration Date of Jan 20th, 2025. All of the positions I bought with AVGO are part of my Stock Split Strategy.

If you remember the first position I bought on the split announcement I made a nice profit of $7700 in 4 days. In the 4 days the stock popped about $100, and the options went up at a much higher percentage. That trade is listed below.

6/13/24 – Buy to Open 1 AVGO 7/26/24 $1680.00 C @ $88.00

                   6/17/24 – Sell to Open 1 AVGO 7/26/24 $1680.00 C @ $165.00

 Profit $7700

As I always say, be very careful. My posts are to show you what I’m doing, not for you to mimic my trades. Remember, at this point I’m trading with their money because of my $7700 profit.

Let’s watch Broadcom and see what happens.

 

Successful trading,

Steve

The Options Coach