Downloading...
Broadcom Inc.
Short

AVGO Weekly Options Outlook — May 31, 2025

94
📉 AVGO Weekly Options Outlook — May 31, 2025

🚨 AI Model Consensus: Cautiously Bearish Into June 6 Expiry

🧠 Model Breakdown
🔹 Grok (xAI)

Bias: Moderately Bullish

Technicals: Price > EMAs, strong momentum, RSI near 80.

Sentiment: Positive earnings, falling VIX, call OI heavy at $250.

Trade: Buy $245C @ $8.25 → PT +20%, SL −10%

Confidence: 75%

🔹 Claude (Anthropic)

Bias: Moderately Bearish

Technicals: RSI 80.6 = extreme; resistance near $242.3.

Trade: Buy $230P @ $4.55 → PT $6.85 (+50%), SL $3.40 (−25%)

Confidence: 72%

🔹 Llama (Meta)

Bias: Moderately Bearish

Technicals: Bullish trend fading, MACD divergence, RSI 80+.

Trade: Buy $227.5P @ $3.85 → PT +50%, SL −50%

Confidence: 70%

🔹 Gemini (Google)

Bias: Moderately Bearish

Technicals: RSI >80, MACD bear cross, volume spike = fatigue.

Trade: Buy $220P @ ~$2.07 → PT +75–100%, SL −30–35%

Confidence: 65–70%

🔹 DeepSeek

Bias: Moderately Bearish

Technicals: Daily MACD bearish, resistance at $242.25.

Trade: Buy $240P @ ~$8.40 → PT +50%, SL −30%

Confidence: 65%

✅ Consensus Summary
📈 AVGO has rallied hard—RSI now overbought (~80–81)

💡 4 of 5 models see pullback risk due to:

RSI extremes

MACD bearish divergence

Heavy distance above Max Pain @ $220

📉 Sentiment cooling despite strong earnings backdrop

⚠️ Disagreements
Aspect Bullish (Grok) Bearish (Others)
📊 Direction $245 Calls $230P / $227.5P / $220P / $240P
🎯 Strike Range $245 (OTM call) $220–$240 (puts)
🧠 Confidence Range 65%–75% 65%–72%

🎯 Recommended Trade
💡 Strategy: Bearish Naked Weekly Put

🔘 Ticker: AVGO

📉 Direction: PUT

🎯 Strike: $230

💵 Entry: $4.55

🎯 Target: $6.83 (+50%)

🛑 Stop: $3.40 (−25%)

📏 Size: 1 contract

📅 Expiry: 2025-06-06 (weekly)

⏰ Entry Timing: Market Open

📈 Confidence: 72%

⚠️ Key Risks
🔼 A continued rally from strong AI/macro themes could break bearish setups

⚡ Gaps at open may widen bid/ask and auto-trigger stops

⌛ Time decay (theta) ramps midweek—price action must confirm early

📉 Max Pain @ $220 could magnet price or fail if trend remains strong

📊 TRADE DETAILS (JSON)
json
Copy
Edit
{
"instrument": "AVGO",
"direction": "put",
"strike": 230.0,
"expiry": "2025-06-06",
"confidence": 0.72,
"profit_target": 6.83,
"stop_loss": 3.40,
"size": 1,
"entry_price": 4.55,
"entry_timing": "open",
"signal_publish_time": "2025-05-31 23:51:03 UTC-04:00"
}

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.