Khouw Recommends Broadcom $335 Put Sale Before Q3 Earnings as Options Price an 8% Move
Updated
Updated · CNBC · Aug 31
Khouw Recommends Broadcom $335 Put Sale Before Q3 Earnings as Options Price an 8% Move
3 articles · Updated · CNBC · Aug 31
Summary
Broadcom traders are being steered toward a moderately bullish earnings trade: sell the Sept. 25 $335 put and a $430/$435 call spread ahead of Wednesday's Q3 report.
The setup aims to harvest elevated premiums, with the example generating nearly $7 a share—about 1.8% in under four weeks—while limiting upside risk if the stock jumps.
Options imply roughly an 8% move by week’s end because investors are still reacting to Broadcom’s last report, after which the stock fell nearly 13% in a day and about 23% over the next month.
Technical signals are mixed: Broadcom is consolidating below its 150-day moving average, but a positive Commodity Channel Index suggests momentum may be improving.
The main risk is another weak AI revenue outlook from management, which could force assignment near $328 a share if a post-earnings selloff repeats.