AVGO Trade Update - READ, prices are moving

[logo, header, fopr] June 26, 2024 Hey Option Pit Research, Since we last talked on AVGO, NVDA sneezed and AVGO got the flu…. You can see that here on both charts, AVGO (standard candles) and NVDA (blue line): [sneeze] Both down over the last week. The bad news is… we miss-timed our trade on AVGO. That happens sometimes. The good news is… that’s not the end, and really, it never is when you have professional level options strategies in your back pocket, which is exactly what we bring you here at Option Pit and through Option Pit Research. So - reviving this position. Lucky for us, AVGO is actually presenting a perfect opportunity to roll down our position. Rolling down is when we’d sell to close an existing long call and simultaneously buy a call closer to the money on the same stock - same expiry date, but lower strike. It’s not SUPER common, but it can be very effective in a position we find ourselves in right now on AVGO where: - We have an options position that’s down - We still believe our thesis that AVGO will go higher - And we want to get a “better” price by leveraging up AVGO could drop another 3% and completely close the gap on the chart…but as the split approaches, the excitement in AVGO will return to recent highs, so being long (expecting the stock to move higher) makes a lot of sense. The issue is our calls have dropped dramatically, and sitting and hanging onto them is a waste as a strong rally in AVGO MIGHT get these back to break even. We don’t trade to breakeven, we trade to win. So what we want to do is roll down using a call spread. This will up our cost slightly, but if AVGO gets a strong rally… which it is highly likely to do ahead of the split as we’ve seen with so many other pre-split names over the years… we will have a MUCH easier time converting this trade to profitable. This is something I rarely do, but in this particular situation, it makes a lot of sense and can help us bring this position back to even - and then profitable. To roll down our position, we will: BTO AVGO 1700 calls for $27 and sell the AVGO 1900 calls around $7, essentially going long the 1700 calls for the net cost of ~ $20. Video to follow from Mark - stay tuned [sig, hannah] --------------------------------------------------------------- Don't miss when our traders go live! Get an alert everytime we open the live rooms to all of our readers for free by selecting the calendar you use below. Add Option Pit Live Events to Your Calendar [Apple]( [Google]( [Outlook]( [Outlook.com]( [Office 365]( [Yahoo]( All the Right Options. The Option Pit Team brings more than 150 years of experience to you every day. From the trading pits of Chicago to the world's largest banks to the halls of power in DC -- they've done it all. Now they’re collectively focused on one thing: making YOU a better, more profitable trader. Click the button below to schedule a call with our concierge Customer Care Team to find your best fit today. DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute the solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Want to change how you receive these emails? You can [Update your preferences]( This email was sent by support@optionpit.com. 1-888-872-3301 [Option Pit]( | 190 S LaSalle Suite 3000 Chicago, IL 60603 | [Privacy Policy](