Broadcom (BRCM) Offering Possible 5.36% Return Over the Next 14 Calendar Days

Broadcom's most recent trend suggests a bearish bias. One trading opportunity on Broadcom is a Bear Call Spread using a strike $54.50 short call and a strike $60.00 long call offers a potential 5.36% return on risk over the next 14 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $54.50 by expiration. The full premium credit of $0.28 would be kept by the premium seller. The risk of $5.22 would be incurred if the stock rose above the $60.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Broadcom is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Broadcom is bearish.

The RSI indicator is at 71.95 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Broadcom

Tech Stocks from Briefing.com
Fri, 05 Jun 2015 11:00:13 GMT

What’s the Rationale for the Broadcom-Avago Merger?
Thu, 04 Jun 2015 15:07:03 GMT
Market Realist – The Broadcom-Avago merger is expected to deliver $750 million in annual synergies within about 18 months of completion of the deal.

Potential Regulatory Pitfalls of the Broadcom-Avago Merger
Thu, 04 Jun 2015 14:06:36 GMT
Market Realist – Broadcom and Avago will have to get the proxy statement approved by the SEC. Once the SEC approves it, a vote must be scheduled at least 30 days from the mailing date.

Basics of the May Broadcom-Avago Merger Agreement
Wed, 03 Jun 2015 18:26:42 GMT
Market Realist – The Broadcom-Avago merger is a cash and stock transaction. Broadcom shareholders will participate in the upside by holding stock in the merged entity.

The Broadcom-Avago Merger: Political Risk Is an Issue
Wed, 03 Jun 2015 18:25:52 GMT
Market Realist – The Broadcom-Avago merger could have political risks. Left-wing politicians may pressure the Obama Administration, which has zero love for inversion trades, to put the kibosh on this deal.

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