Broadcom (NASDAQ:AVGO), up 4.1% at $370.30 at last check amid a broader sector lift thanks to Nvidia's earnings report. The stock is scheduled to report fiscal third-quarter earnings after the market closes on Wednesday, Sept. 2. According to Zacks Research, analysts expect earnings of $3.22 per share on projected revenues of $29.47 billion.
Options traders are pricing in an 12.4% post-earnings move, regardless of direction, comparable to AVGO's average reaction of 10.8% over the last eight quarters. The shares have finished higher after five of those last eight reports.
The 300-day moving average helped contain the stock's most recent pullback, a trendline that the shares rallied off of in March. Year-to-date, AVGO is up 6.7%.
Options are affordable ahead of the event too, per AVGO's Schaeffer's Volatility Index (SVI) of 54% stands higher than just 7% of all other readings from the past year, implying that near-term option traders are pricing in relatively low volatility expectations.
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