To The Moon

Broadcom delivered strong Q3 numbers and mapped out massive multi-gigawatt custom AI chip orders across Anthropic, OpenAI, and Meta through 2028. However, an in-line near-term forecast triggered immediate post-earnings profit-taking, knocking shares down toward key chart support around $360. For options traders, this pullback creates defined-risk opportunities to monetize volatility rather than chasing momentum.

Executive summary

• Achieved record Q3 revenue of $29.6 billion, up 86% year-over-year, driven by strong demand for AI accelerators and networking.

• Q3 GAAP operating income reached $16.0 billion; non-GAAP operating income was $20.1 billion, up 92% year-over-year.

• Q3 GAAP diluted EPS was $2.68; non-GAAP diluted EPS was $3.32, up 96% year-over-year.

• Free cash flow for Q3 was $13.7 billion, representing 46% of revenue.

IF YOU ALREADY OWN THE SHARES

• If you hold 100 shares or more, consider writing a covered call.

• The Logic: Selling an out-of-the-money call around resistance near $430 lets you pocket premium to cushion against near-term downside. If the stock chops sideways, you keep the cash; if it rallies past the strike, you lock in gains at a favorable exit.

IF YOU WANT TO OWN THE SHARES

• If you want to build a long-term position at a lower cost basis, consider selling an out-of-the-money cash-secured put.

• The Logic: Testing the $350–$360 support zone makes writing a 30-to-40-day put near the $345 an effective entry mechanism. You collect upfront option premium while you wait. If AVGO stays above your strike, the premium is pure profit; if the stock dips below it, you are obligated to buy quality AI shares at an effective discount below current market prices.

EDUCATIONAL DISCLAIMER

This post is for educational and informational purposes only and does not constitute financial advice. Options involve significant risk and are not suitable for all investors. Always conduct your own research and assess your personal risk tolerance before trading.