Broadcom set to report Q3 earnings amid volatile options market
Broadcom (AVGO) will release its third-quarter results after markets close on Wednesday, with analysts noting heightened implied volatility and mixed technical signals following a disappointing prior earnings report.
Broadcom is scheduled to announce its third-quarter earnings after the market close on Wednesday. The semiconductor maker’s market value of about $1.75 trillion places it among the world’s largest companies, though its earnings receive less coverage than peers such as Nvidia.
The company’s last quarterly report triggered a sharp sell-off, with shares falling nearly 13 % the next day and about 23 % over the following month. Analysts said the decline was linked to Broadcom’s decision not to raise its 2027 artificial-intelligence revenue target, despite solid underlying numbers.
Options traders are watching the stock closely, as implied volatility remains elevated, with the market pricing an approximate 8 % move by week’s end. Technical indicators show the stock trading just below its 150-day moving average, while the Commodity Channel Index has turned positive, suggesting possible momentum building.
One strategy being discussed involves selling an out-of-the-money cash-covered put roughly 10 % below the Friday closing price and simultaneously selling an upside call spread. The trade aims to generate a net credit that exceeds the width of the call spread, limiting downside risk even if the stock rises sharply.
If Broadcom’s earnings again fall short of forward AI revenue guidance, the stock could experience another decline, potentially obligating put sellers to purchase shares near $328 each. The outcome will depend on the company’s guidance and market reaction after the report.