Trade Alert – (AVGO) February 6, 2026 – TAKE PROFITS – SELL

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

 

Tech Alert – Broadcom Inc. (AVGO) – TAKE PROFITS

SELL Broadcom Inc. (AVGO) February 2026 $290-$300 in-the-money vertical BULL CALL spread at $9.00

 

Closing Trade

2-6-2026

expiration date: February 20, 2026

Portfolio weighting: 10%

Number of Contracts = 12 contracts

I executed a bull call spread on AVGO and took profits after the stock surged 7% this morning.

Broadcom’s (AVGO) short-term potential is driven by its central role in the accelerating AI infrastructure boom. The company has a substantial $73 billion AI-related order backlog to be delivered over the next 18 months, providing strong revenue visibility well into 2026.

AI semiconductor revenue grew by 74% year-over-year in Q4 2025 and is projected to accelerate further, with Q1 2026 AI revenue expected to double year-over-year to $8.2 billion. This growth is fueled by supplying custom AI chips to major hyperscale data center customers, including Google and Anthropic. Additionally, the company generates robust free cash flow and operates with elite margins, providing significant financial strength.

Here are the specific trades you need to exit this position:

Sell to Close 12 February 2026 (AVGO) $290 calls at…………$45.30

Buy to Close 12 February 2026 (AVGO) $300 calls at…………$36.30

Net Proceeds:……………………..…….………..…………………………$9.00

Profit: $9 – $8.30 = $0.70

(12 X 100 X $0.70) = $840 or 8.43%

 

 

 

 

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.