Technology
AVGO
Broadcom Inc.
Premium income from Broadcom (AVGO) with covered calls and cash secured puts. Diversified chip giant with strong dividend.
Monthly Premium1.5-2.5%
Annualized Return18-30%
Stock Price$180-220
IV RankModerate (35-50)
Options LiquidityGood
Dividend Yield1.3%
Why AVGO for Covered Calls & Cash Secured Puts?
AVGO offers excellent dividend plus premium. Diversified across networking, storage, wireless, and enterprise software (VMware). AI networking chips are in high demand.
Example Covered Call Trade
AVGOCovered Call
Strike Price$210 (6% OTM)
Expiration30 days
Premium$4.00 per share
Return If Flat2.0% ($400)
Return If Called8.0% ($1,600)
Keep Probability72% keep shares
Recommended Strategy for AVGO
Conservative calls 5-7% OTM to supplement the dividend. AVGO is great for tech income investors.
Risks to Consider
- VMware integration challenges
- High debt from acquisitions
- Customer concentration
- Cyclical semiconductor exposure
Analyze AVGO Covered Calls Now
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