nomadic_m
06-19
Here's an example of a diagonal spread for $Broadcom(AVGO)$ :

- Buy a call option with a strike price of $1830, expiring on July 19, 2024 (cost: $10,520)
- Sell a call option with a strike price of $1920, expiring on June 21, 2024 (receive $1,438)

If the sold call option expires worthless, the investor will receive a profit of $1,438, which is approximately 13.7% of the cost of the long call option. The investor can sell the call option every week, potentially reducing the cost of the long call option.

The diagonal spread strategy provides an additional source of income and reduces the overall cost of the strategy, making it a low-cost way to buy call options. Investors can adjust the strike price and expiration date of the sold call option to control risk.

New Highs for Semi! Is Broadcom Next Nvidia?
Broadcom continued to jump after earnings and split news, closing above $1800 on Monday. Following in Nvidia's footsteps, Broadcom plans a 10-for-1 stock split after the market close on July 12. Besides Broadcom, TSMC, AMAT, MU, QCOM, and other semiconductor companies are also hitting new highs. ------------- Would you buy Broadcom before or after the stock split? Which semi stock do you hold or bullish? What's your target price for AVGO? Is it next Nvidia?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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