AVGO is a bullish position: strong September earnings were followed by a drop-and-pop, and the speaker believes it is undervalued now. He cites a 37.7% discount to fair value (461 vs 335) and Seeking Alpha/Investing Pro strong-buy and fair-value signals, with no near-term earnings.

Alexander says AVGO. David says yes. Alexander says yes. Great. Thank you guys. Thank you. Appreciate that. Okay. So, we're going to look at Meta and then we're going to look at AVGO.

So Broadcom um I'm super bullish on Broadcom right now just so everybody's aware of where my my stance is. We had earnings in September. Um we had great earnings. uh stock stock dropped and popped and um my belief is that we are undervalued right now.

461 currently 335. How's that for that? Uh, how's that for upside potential? Potential upside. What am I doing here? 37.7%. Broadcom is 37.7% undervalued.

Let's look at Seeking Alpha and see what it says about Broadcom. We're going to look for this valuation down here. That's going to appear right here. C. But again, A+ profitability and again flat on the air 4%. Look at this strong buy rating.

Investing Pro is also saying fair value is 37.7% above its current price. please tell me there's there's no earnings because the earnings were just in September. So, we we have some time with this.

Stocks trading at 335. Expected move between now and then is the base of the straddle times 80%. So we looked at that, right? So we got our three 320 in mind.

Right now we're just going to add two numbers together 8.90 and 975. So get our calculator wherever that is. ... 9.5 plus 9. So, 18.5 times.88. I don't want to mess this up. 14.8.

So, this is going to be plus or minus 14.8 from this point. Stocks trading at 335. So, what's $15 below 335? That's the 320. What's What's $15 above? That's going to be the three Uh 360, sorry, 3 350.

320 was the was the mark. That happens to be where we're looking at that straddle price too. So this is a good good starting point because it could come down to this level.

What I want to do when I am entering a diagonal, ideally I want to have only single-sided risk. So, in this case, I am collecting $3.70 for this. We can see if I just sold it directly.

And again, this is uh if we look at the simulator, I've got $31,000 in capital trying to make $367. 77% probability of profit.

This is how lots of people trade puts and short short puts and I have and and we can and uh that is totally acceptable. But we have to understand what we're trading. We are trying to make a little bit amount of money with a huge amount of money tied up. So it may not be the best plan overall.

I want to look at strategies that are much much smaller than that. So how do we define that risk? Well, we go to the chain and so we looked at 10 days. Now I'm going to double that.

So we can either go to the 17 or the 24. I like to do around the 17. So this is a this is a week and a bit out and then a one week after that.

And what I'm going to do is I'm going to look down and no there's no earnings. I'm just going to look to see can I buy something that is around that same price. 370 390 that's the the 31250.

What about this 320 to 340? What if I was to buy one of those? This is going to start me with a credit. This is going to start me at 50. Now 50 is not very much but look at look at how much I'm risking.

The max loss on this is $985. No upside risk, 79% probability of profit.

Well, the stock could go way up, right? The stock could go parabolic and it would be like, oh, um, you know, the stock went to whatever 470 bucks, like just ridiculously high. I open this for credit.

So, at expiration, if AVGO has gone up way way way to the moon, all that happens is that this this short put that I've sold expires worthless on October 30th and I still own the November 6 long put, the 310, which will have no value.

That's it. It'll have no value. So, because the stock has gone up way too way too much, so it's just lost all everything. But, this won't have any risk on this November 6 trade.

So over the course of the next 10 days, if AVGO was to go way way up, I would make 45 bucks. If I could get 45 bucks to open this, that would be that's the bullish

So, if the if AVGO just continued to go up and up and up and up and up all year, I make 2,900 bucks. The reason that this could have a max profit of 400 is what happens if AVGO comes down and it expires right near this 320.

if we were to zoom out and AVGO went to 400 bucks I would actually lose money because I paid 170 bucks to get into it.