Trade Alert – (AVGO) January 14, 2026 – BUY

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) – BUY

Buy Broadcom Inc. (AVGO) February 2026 $290-$300 in-the-money vertical BULL CALL spread at $8.30

 

Opening Trade

1-14-2026

expiration date: February 20, 2026

Portfolio weighting: 10%

Number of Contracts = 12 contracts

I am executing a bull call spread on AVGO on this 5% dip 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.

Don’t pay more than $8.50 – prices are highly volatile in this name this morning for good reason.

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

Buy to Open 12 February 2026 (AVGO) $290 calls at……….…$52.65

Sell to short 12 February 2026 (AVGO) $300 calls at………….$44.35

Net Cost:……………………..…….………..…………………………………$8.30

Potential Profit: $10 – $8.30 = $1.70

(12 X 100 X $1.70) = $2,040 or 20.48% in 37 days

 

 

 

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.