BRCM Earnings, Sell Calls
Good, But Not Great
PLAY: Sell your BRCM February 28 Calls (O:BRCM 10B28.00) at market, good for the day. Hold your BRCM February 27 Puts (O:BRCM 10N27.00).
Dear Bottarelli Research Member,
This morning, our latest earnings play Broadcom (BRCM – NASDAQ) reported that revenue increased 19% to $1.34 billion versus $1.12 billion one year ago. This beat the analyst expectation of $1.31 billion. They also reported a quarterly profit versus a year-ago loss, and declared a $0.08 dividend starting March 8th. On this news, shares of BRCM are up just under $1.00, which doesn’t seem to be the reaction that we’re looking for. Therefore, lets’ use this move to sell our calls and then hold onto our puts for a pending pullback.
PLAY: Sell your BRCM February 28 Calls (O:BRCM 10B28.00) at market, good for the day. Hold your BRCM February 27 Puts (O:BRCM 10N27.00).
And as always…
Lock and load!
Sincerely,
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