Options Corner: AVGO Lags Behind Chipmaking Peers in 2026

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So I'm now for Options Corner. Joining us to take a deeper look at the chart is Rick Ducat, our lead of market technician. All right, Rick, what trends should we notice on this chart? Yeah, so looking at Broadcom outpacing the S&P, but a laggard in terms of the tech sector here, the XLK ETF, as well as the SMH Semiconductor ETF, up 41 and 90% respectively here. When we also look at the names that are in this kind of specialized CPU and GPU maker space, Broadcom once again is the laggard of the group, roughly on pace with Nvidia. Now, I think part of it is too is that these two stocks had already enjoyed very outsized gains during previous years and have since been in a more consolidative phase here relative to some of these other more high flying names recently. So that could be part of the situation here. So if we do think about Broadcom's chart, what we have is a old high here near 495 that has been not tested really even close since last earnings. We had a significant drop off there and then roughly a sideways trajectory here in terms of our price activity. The highs came in right around the post gap highs here near 426 The lows came in here near 350 That was one intraday low, but really around here near 357 was a more consistent low point here. So if we were to keep moving and take a look here, we can see our moving averages were between our 250 one day and our 63 day. Those are our overall boundaries here, 354 to about 386 So finally, our volume profile study shows that we have our point of control here and another node here between about 345 to 380
All right, what's the approach you would take for an example trade, Rick? Right, so thinking about our expected move for September 18th, we can see that the low point that we have here, near about 332 or so, lines up with an old low important point here. So minus 1, September 18th, 335, 330 put vertical at a $1 credit, neutral to bullish outlook here, 16 days to expiration, max profit 100, max loss 400 So roughly right about on par with that expected move area, breakeven 334
All right, thank you Rick, appreciate that. That's an example trade there for Broadcom, head of its quarterly results.