$AVGO is 36% off its $495 high. You can buy 100 shares for ~$31,890 or grab the Jan 2028 $300 call LEAP for $7,985—75% less capital, 438 days of runway, same 100-share exposure.
Breakeven: $379.85. If $AVGO hits $400, the LEAP returns ~25%. At $500, ~150%. At $600, ~276%. Shares at $600 would only return ~88%.
Why this works: AI semiconductor revenue jumped 221% to $16.7B last quarter. Broadcom guided fiscal Q4 AI revenue to $21.7B, up 236%. Management expects $115B in AI revenue by fiscal 2027—and they say they've secured the supply. Anthropic and OpenAI are deploying gigawatts of Broadcom's custom chips in 2027. Fiscal 2027 ends before this LEAP expires, so the full $115B AI target plays out inside the trade.
Max loss: the entire $7,985 premium. LEAPs are leveraged—they can lose value fast if the stock drops or stays flat. Only size what you're comfortable losing entirely. This is a high-conviction add-on, not a core position. Shares first, LEAPs second.
Breakeven: $379.85. If $AVGO hits $400, the LEAP returns ~25%. At $500, ~150%. At $600, ~276%. Shares at $600 would only return ~88%.
Why this works: AI semiconductor revenue jumped 221% to $16.7B last quarter. Broadcom guided fiscal Q4 AI revenue to $21.7B, up 236%. Management expects $115B in AI revenue by fiscal 2027—and they say they've secured the supply. Anthropic and OpenAI are deploying gigawatts of Broadcom's custom chips in 2027. Fiscal 2027 ends before this LEAP expires, so the full $115B AI target plays out inside the trade.
Max loss: the entire $7,985 premium. LEAPs are leveraged—they can lose value fast if the stock drops or stays flat. Only size what you're comfortable losing entirely. This is a high-conviction add-on, not a core position. Shares first, LEAPs second.
