AVGO: Whales Drop $285 MILLION on AI Chip Giant - Taking Profits After Massive Run!
Institutional traders just executed **$28.5 MILLION** in [AVGO](https://www.ainvest.com/stocks/NASDAQ-AVGO/?utm_source=optionlabs&utm_medium=post) options - selling $28M worth of calls and trading put...
📅 September 10, 2025 | 🔥 Massive Institutional Activity Detected
🎯 The Quick Take
Institutional traders just executed $28.5 MILLION in AVGO options - selling $28M worth of calls and trading puts with surgical precision! 🐋 With AVGO up 58.42% YTD at $367.50 and fresh off a $10 billion OpenAI partnership announcement, smart money is cashing in massive profits while the stock sits near all-time highs! This isn't panic selling - it's strategic profit-taking after one of the year's best semiconductor runs! 💰
💰 The Option Flow Breakdown
📊 What Just Happened
Let me break down these monster trades that hit the tape this morning:
| Time | Symbol | Side | Buy/Sell | Type | Strike | Premium | Volume | OI | Size | Spot Price | Option Price |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 10:51:46 | AVGO20250912C330 | MID | SELL | CALL | $330 | $17M | 4.2K | 1.9K | 4,000 | $371.91 | $42.25 |
| 10:51:46 | AVGO20250912P330 | ASK | BUY | PUT | $330 | $72K | 6.9K | 3.2K | 4,000 | $371.91 | $0.18 |
| 11:06:51 | AVGO20250912C330 | MID | SELL | CALL | $330 | $11M | 6.7K | 1.9K | 2,500 | $372.20 | $42.57 |
| 11:06:51 | AVGO20250912P330 | MID | SELL | PUT | $330 | $50K | 9.7K | 3.2K | 2,500 | $372.20 | $0.20 |
Expiration: September 12, 2025 (2 days away! Talk about going big or going home! 🎰)
🤓 What This Actually Means
Real talk: This is MASSIVE institutional repositioning!
Here's the translation for us regular folks:
The Call Sells ($28M Total): - Collecting massive premium at $42+ per contract - Betting AVGO won't rocket past $330 by Friday - With stock at $372, that's 11% downside cushion - Max profit if AVGO stays below $330: $28 MILLION
The Put Activity ($122K Total): - Mix of buying and selling puts at $330 - Tiny premiums ($0.18-$0.20) suggest low downside fear - Creating a protective floor at $330 level
The Combined Strategy: - This whale is saying: "I've made a fortune on AVGO's run, time to lock in $28M in profits!" - With stock at $372 and strike at $330, they're keeping premium unless AVGO crashes 11% in 2 days - Translation: Smart money is taking profits after a 58% YTD rally - this is disciplined trading, not bearishness! 💡
📈 Technical Setup / Chart Check-Up
📈 AVGO Year-to-Date Performance with Volume Analysis
Looking at the YTD performance, AVGO has been absolutely CRUSHING it:
Key Metrics: - 🚀 YTD Return: +58.42% (Absolutely on fire!) - 📊 Current Price: $367.50 - 📈 Start of Year: $231.98 - 🔴 Max Drawdown: -60.19% (March bottom at $93 - wow!) - 💪 Volatility: 46.03%
Technical Levels: - 🎯 Current: $367.50 - 🛡️ Strike Target: $330 (10.2% below current) - 📈 Recent Pattern: Explosive rally from March lows (up 295%!) - 💚 Support Zone: $330-340 (where the whales are positioned)
Translation: AVGO went from $93 in March to $367 today - that's a 295% rally in 6 months! These whales aren't bearish, they're just smart enough to lock in gains after one of the year's most epic comebacks! 🎲
🎪 Catalysts
Upcoming Events 🚀
📊 Q4 Earnings - December 8-12, 2025
- Q4 revenue guidance: $17.4B (24% YoY growth)
- Fiscal 2026 guidance coming with AI acceleration story
- Wall Street watching for $60-90B AI revenue target by 2027
🤖 OpenAI Custom Chip Production - Starting 2026
- $10 billion initial order already announced
- Co-developing next-gen AI accelerators
- Potential to scale to Google/Meta levels
🔧 Advanced Product Launches - Q4 2025/Q1 2026
- Tomahawk Ultra networking chips (4x better than NVIDIA's NVLink)
- 2-nanometer AI XPU packaging technology
- 200G/lane co-packaged optics for exascale computing
Past Events (Already Happened) ✅
💰 Q3 Earnings Blowout - September 4, 2025
- Revenue: $15.95B (beat by 22% YoY)
- AI semiconductor revenue: $5.2B (63% YoY growth!)
- Stock surged 13% post-earnings
🏆 Crossed $1 Trillion Market Cap - September 2025
- Became 9th tech company to reach this milestone
- Market cap now at $1.63 trillion
- Joined the elite "Magnificent Eight" club
🎲 Price Targets & Probabilities
Based on the massive option flow and upcoming catalysts:
🚀 Bull Case (25% chance)
Target: $400-420 by year-end - OpenAI partnership exceeds expectations - AI revenue hits $90B run rate by 2027 - December earnings crush estimates - Break above September highs
⚖️ Base Case (50% chance)
Target: $340-370 - Consolidation after massive 2025 run - Steady AI growth continues - Stock trades sideways into earnings - Whales' $330 puts expire worthless
😰 Bear Case (25% chance)
Target: $310-330 - Profit-taking after 58% YTD gain - AI spending slowdown concerns - Competition from NVIDIA intensifies - Test the $330 strike level where whales are positioned
💡 Trading Ideas
🛡️ Conservative Play: "The Premium Harvester"
- Strategy: Sell $320 puts, 30 days out
- Premium: ~$3-4 per contract
- Why it works: Collect premium with 13% downside cushion
- Risk: Assignment if AVGO drops below $320
⚖️ Balanced Play: "Follow the Whale"
- Strategy: Sell $340/$350 call spread for October
- Cost: Collect ~$3 credit per spread
- Max profit: Keep premium if AVGO stays below $340
- Why it works: Similar thesis to the whale, smaller size
🚀 Aggressive Play: "Catch the Bounce"
- Strategy: Buy $350 calls for October if AVGO dips to $340
- Cost: ~$8-10 per contract
- Why it works: Play the bounce from whale support level
- Risk: Total loss if consolidation continues
⚠️ Risk Factors
Let's keep it real - here's what could go wrong:
- Valuation Risk: Trading at premium multiples after 58% YTD run
- Competition: NVIDIA still dominates AI training chips
- Customer Concentration: Heavy reliance on 4 major hyperscalers
- Short-term Expiry: These options expire in 2 DAYS - zero room for error!
- Market Rotation: Growth stocks could face pressure if rates rise
🏢 Company Overview
Broadcom Inc. (AVGO) - The AI Infrastructure Powerhouse!
Let me introduce you to this semiconductor giant:
-
What They Do: Broadcom is the sixth-largest semiconductor company globally, designing chips that power everything from your iPhone to massive AI data centers. They sell 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. Plus, they've expanded into software with VMware, CA Technologies, and Symantec acquisitions!
-
Market Cap: $1.63 TRILLION (Yes, with a T! Member of the exclusive trillion-dollar club!)
-
Sector: Semiconductors & Related Devices
-
Why They Matter: They're the "picks and shovels" of the AI gold rush! They make:
- Custom AI chips for Google, Meta, ByteDance, and now OpenAI
- Networking chips that connect NVIDIA GPUs in data centers
- The FBAR filters in every iPhone
- Critical infrastructure software for enterprises
Think of Broadcom as the company building the highways and bridges for the AI revolution - without their chips, AI data would be stuck in traffic! 🚗
🎯 The Bottom Line
Real talk: Someone just cashed out $28.5 MILLION after riding AVGO from $93 to $367 - that's not bearish, that's BRILLIANT! 🧠
Here's your action plan:
If you own AVGO: - Consider taking some profits above $360 (follow the smart money!) - Watch the $330 level - massive options activity there - Friday's expiration (Sept 12) could bring volatility
If you're watching: - Any dip toward $330-340 could be your entry opportunity - December earnings (Dec 8-12) is the next major catalyst - This profit-taking after 295% rally from March lows is HEALTHY
If you're bearish: - These whales are just profit-taking, not turning bearish - $330 is the key support level with massive option interest - Long-term AI story remains rock solid with OpenAI partnership
Mark your calendar: - September 12 (options expiry in 2 days - expect fireworks!) - December 8-12 (Q4 earnings with 2026 AI guidance)
Remember: When someone sells $28M in call premium after a stock rallies 295% in 6 months, they're not predicting doom - they're being disciplined! With Broadcom's AI dominance, $10B OpenAI deal, and potential $60-90B AI revenue by 2027, any significant dip is probably a buying opportunity. But for now, the smart money is saying "thank you for the gains!" 💰
Sometimes the best traders aren't the ones who hold forever - they're the ones who know when to take profits and live to trade another day!
⚠️ Options involve risk and are not suitable for all investors. These whale-sized bets are extraordinary and not typical. Always do your own research and never invest more than you can afford to lose. Not financial advice - just one trader sharing what the big money is doing!