AVGO Weekly Options Outlook — May 31, 2025

📉 AVGO Weekly Options Outlook — May 31, 2025

🚨 AI Model Consensus: Cautiously Bearish Into June 6 Expiry

🧠 Model Breakdown
🔹 Grok (xAI)

Bias: Moderately Bullish

Technicals: Price > EMAs, strong momentum, RSI near 80.

Sentiment: Positive earnings, falling VIX, call OI heavy at $250.

Trade: Buy $245C @ $8.25 → PT +20%, SL −10%

Confidence: 75%

🔹 Claude (Anthropic)

Bias: Moderately Bearish

Technicals: RSI 80.6 = extreme; resistance near $242.3.

Trade: Buy $230P @ $4.55 → PT $6.85 (+50%), SL $3.40 (−25%)

Confidence: 72%

🔹 Llama (Meta)

Bias: Moderately Bearish

Technicals: Bullish trend fading, MACD divergence, RSI 80+.

Trade: Buy $227.5P @ $3.85 → PT +50%, SL −50%

Confidence: 70%

🔹 Gemini (Google)

Bias: Moderately Bearish

Technicals: RSI >80, MACD bear cross, volume spike = fatigue.

Trade: Buy $220P @ ~$2.07 → PT +75–100%, SL −30–35%

Confidence: 65–70%

🔹 DeepSeek

Bias: Moderately Bearish

Technicals: Daily MACD bearish, resistance at $242.25.

Trade: Buy $240P @ ~$8.40 → PT +50%, SL −30%

Confidence: 65%

✅ Consensus Summary
📈 AVGO has rallied hard—RSI now overbought (~80–81)

💡 4 of 5 models see pullback risk due to:

RSI extremes

MACD bearish divergence

Heavy distance above Max Pain @ $220

📉 Sentiment cooling despite strong earnings backdrop

⚠️ Disagreements
Aspect Bullish (Grok) Bearish (Others)
📊 Direction $245 Calls $230P / $227.5P / $220P / $240P
🎯 Strike Range $245 (OTM call) $220–$240 (puts)
🧠 Confidence Range 65%–75% 65%–72%

🎯 Recommended Trade
💡 Strategy: Bearish Naked Weekly Put

🔘 Ticker: AVGO

📉 Direction: PUT

🎯 Strike: $230

💵 Entry: $4.55

🎯 Target: $6.83 (+50%)

🛑 Stop: $3.40 (−25%)

📏 Size: 1 contract

📅 Expiry: 2025-06-06 (weekly)

⏰ Entry Timing: Market Open

📈 Confidence: 72%

⚠️ Key Risks
🔼 A continued rally from strong AI/macro themes could break bearish setups

⚡ Gaps at open may widen bid/ask and auto-trigger stops

⌛ Time decay (theta) ramps midweek—price action must confirm early

📉 Max Pain @ $220 could magnet price or fail if trend remains strong

📊 TRADE DETAILS (JSON)
json
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{
"instrument": "AVGO",
"direction": "put",
"strike": 230.0,
"expiry": "2025-06-06",
"confidence": 0.72,
"profit_target": 6.83,
"stop_loss": 3.40,
"size": 1,
"entry_price": 4.55,
"entry_timing": "open",
"signal_publish_time": "2025-05-31 23:51:03 UTC-04:00"
}