Broadcom (AVGO) is set to report earnings on December 11th with a 10.1% expected move. Implied volatility is at 53.56%, giving AVGO an IV Percentile of 84% and an IV Rank of 47.52%. The company specializes in semiconductor devices used in various products and infrastructure software solutions.

An iron condor trade has been placed on Broadcom ahead of earnings. The trade aims to profit from a drop in implied volatility while expecting the stock to stay within a certain range. Maximum profit is limited to the premium received, and maximum potential loss is capped. The trade has a potential return of 60%.

The iron condor consists of a bull put spread and a bear call spread. Short strikes are set at $360 and $440, with the profit zone ranging from $356.25 to $443.75. The maximum risk for the trade is $625. While the trade offers a high probability setup for steady income, it is important to close before earnings to avoid earnings risk.

Options trading carries risks, and investors can lose 100% of their investment. This article is for educational purposes only and not a trade recommendation. Always conduct due diligence and consult a financial advisor before making investment decisions.

Read more at Barchart: AVGO Iron Condor Could See a 60% Return in 3 Weeks