AVGO Earnings Signal | 2025-12-11
Primary Recommendation: BUY PUTS
Conviction: 55% (Low–Medium)
Reason: Katy AI shows consistent bearish pressure despite composite model suggesting calls.
🧠 Why PUTS? (Key Evidence)
Katy AI Prediction
Predicts 0.5%–1.2% downside into the next session
85% of 420 predictions are below current price
Multiple targets near $400–401
Overbought technicals + bearish intraday momentum
Technical Setup
Current price: $405.5
Daily range: $394–$414 (trading near top)
Stochastics: 95+ (extremely overbought)
Light volume = weak support at highs
Options Flow & IV
PCR: 1.13 → mild put bias
IV: 150–210% → earnings volatility extremely high
OTM puts show unusual activity
💰 Trade Setup
Instrument: AVGO 400 PUT
Expiry: 12/12 (1-day)
Entry: $6.05 – $6.15
Target 1: $9.08
Target 2: $12.10
Stop Loss: $4.84
Position Size: 2% portfolio (high-risk)
Risk Level: 🔴 HIGH
⚠️ Risk Notes
1-day expiry → extreme theta decay
Earnings → binary outcome
Composite model shows CALL, but Katy AI + technicals favor PUT
IV crush will be severe after earnings
📝 Quick Summary
Overbought AVGO + bearish Katy AI + high IV + weak volume → short-term downside probability higher.
PUTS are the asymmetric play, but risk is high.
Primary Recommendation: BUY PUTS
Conviction: 55% (Low–Medium)
Reason: Katy AI shows consistent bearish pressure despite composite model suggesting calls.
🧠 Why PUTS? (Key Evidence)
Katy AI Prediction
Predicts 0.5%–1.2% downside into the next session
85% of 420 predictions are below current price
Multiple targets near $400–401
Overbought technicals + bearish intraday momentum
Technical Setup
Current price: $405.5
Daily range: $394–$414 (trading near top)
Stochastics: 95+ (extremely overbought)
Light volume = weak support at highs
Options Flow & IV
PCR: 1.13 → mild put bias
IV: 150–210% → earnings volatility extremely high
OTM puts show unusual activity
💰 Trade Setup
Instrument: AVGO 400 PUT
Expiry: 12/12 (1-day)
Entry: $6.05 – $6.15
Target 1: $9.08
Target 2: $12.10
Stop Loss: $4.84
Position Size: 2% portfolio (high-risk)
Risk Level: 🔴 HIGH
⚠️ Risk Notes
1-day expiry → extreme theta decay
Earnings → binary outcome
Composite model shows CALL, but Katy AI + technicals favor PUT
IV crush will be severe after earnings
📝 Quick Summary
Overbought AVGO + bearish Katy AI + high IV + weak volume → short-term downside probability higher.
PUTS are the asymmetric play, but risk is high.
Free Signals Based on Latest AI models💰: QuantSignals.xyz
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Free Signals Based on Latest AI models💰: QuantSignals.xyz
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.