Get Paid 12% To Buy AVGO At A 30% Discount – Here’s How

Do you think AVGO stock is a good long-term bet at current levels? What about at a 30% discount at about $300 per share? If you think that is a steal and have some cash ready to go, here is a trade.

12% annualized yield at 30% margin of safety by selling Put Options.

• Sell a long-dated Put option expiring 6/17/2027, with a strike price of $300
• Collect roughly $2,680 in premium per contract (each contract represents 100 shares)
• That’s about 8.0% annualized yield on the $30,000 you’re setting aside for the possibility of buying the stock
• This cash parked in a savings or money market account will earn an extra 4.0%, taking total yield to 12.0%
• And you give yourself a chance to buy AVGO stock at deep discounted price of $300

Possible Trade Outcomes: You Win Either Way

Stock Price Outcome: What It Means For You

If AVGO stays above $300. You keep the full $2,680 premium – that is 8.9% extra income over the next 405 days on cash that might otherwise earn you 4.0% or less. You never buy the stock and simply walk away with the cash.

If AVGO closes below $300, you’ll be obligated to buy 100 shares at $300. But thanks to the $2,680 premium, your effective cost basis is just $273.20 per share – a roughly 36% discount from the current level.

And you won’t be buying just another speculative stock. Broadcom is seeing surging demand for its custom ASIC chips for AI and interconnects as companies prepare for the AI inference wave while diversifying away from Nvidia (NVDA). Moreover, the VMware software business also provides a solid, high-margin recurring revenue stream. The fundamentals also look strong. On forward estimates, Broadcom trades at approximately 38x fiscal 2026 earnings and closer to 23x fiscal 2027 consensus earnings. Revenue is expected to grow over 64% this fiscal year and approximately 53% the year after per consensus.

But to hold this trade with conviction, you want to better understand what’s going well for AVGO stock and how low it has fallen in the past.

Complementing Your Active Trades

Executing a cash-secured put on AVGO is a highly efficient way to engineer yield and optimize your entry point. It is a sophisticated play for active investors. But sustainable wealth building also requires a passive, structured engine.

For investors looking to complement their active trades with a hands-off compounding vehicle, the Trefis High Quality (HQ) Portfolio is the solution. It is engineered to capture market upside across 30 high-conviction stocks and has delivered over 105% in cumulative return since inception.