Another Win on AVGO — Even In a Choppy Week

Jack Carter | June 2, 2025

Hey Traders,

I’ll keep it simple: This past week’s 3-day trade on AVGO (Broadcom) was another clean win — the kind I love.

And what makes it even better is that it worked out despite a week where the market felt a little overheated and unpredictable.

That’s the power of structuring your trades in a way that ups your odds of winning, no matter what’s going on in the market.

The Setup

As always, we entered the trade on Tuesday. That bit alone dramatically raises our odds, because we’re taking Monday to observe the market.

And since these trades always close out by Friday, we’re only spending 3 days in the market.

So Tuesday we opened the trade on AVGO:

  • Sold the 220 Put
  • Bought the 217.5 Put

That gave us a $2.50-wide spread, and we collected a $0.20 credit.

With a trade like this, as long as AVGO stayed above $220 (the Put we sold), we’d keep that credit and let the options expire worthless.

$0.20 might not sound like much, but you can trade as many contracts as you want and $0.20 on a $2.50 wide spread is 8% in three days.

Some investors wait a whole year to get 8% returns!

Why I Chose AVGO

If you’ve been watching the chart, you know AVGO’s been on an absolute tear lately — up about 25% over the past month.

It’s showing clear strength, strong volume, and solid trend momentum. And when I placed this trade on Tuesday, AVGO was already up above $237.

That gave us a big cushion — over $17 between the stock’s current price and our short strike.

That’s what I look for: clear structure, lots of room, and that short 3-day duration.

The Result

Fast forward to Friday, and the trade worked out just like we planned.

AVGO stayed comfortably above our short strike the entire week, finishing at $242.07 on Friday’s close.

The 220 level? Never even came close.

And that means our options expired worthless — and we kept that $0.20 credit.

Final Thoughts

Here’s the thing…

When you focus on structure instead of guessing, you can win — even when the market’s choppy, overheated, or full of noise.

This is the same playbook I use every single week:

  • Pick stocks that are trending strongly in the same direction as the broad market
  • Find a high-probability zone
  • Sell a spread with cushion
  • Let time work in your favor

And this week? AVGO gave us a textbook example.

We’re not chasing, we’re not predicting — we’re just trading smart.

Trade well,
Jack Carter

P.S. Fund managers are rotating their holdings… and that means these tickers could be set to soar in June!

Trending Stocks of the Week — June 2, 2025

Jack Carter | June 2, 2025

June means fund managers will be rotating into specific stocks… and my data shows these three tickers could skyrocket next!

To help you discover the power of trends, every week I share with you a handful of the top trending stocks.

These stocks are picked by my purpose-built, custom-made TrendPoint software to pick the strongest trending stocks in the market right now.

If you know anything about me, you know that every trade I get into starts with a trending stock.

Unless a stock is in a strong trend, I don’t want to hear about it. In my book, wishy washy stocks are the quickest way to losing money.

This Week’s Stocks

All three indexes remain above all their key trend lines…

And right now we’re starting to see bullish crossovers happening with those trendlines.

All this adds more bullish fuel to our market outlook.

Two bullish picks this week:

  • CHWY
  • OR

And don’t forget about last week’s list, which you can find here.

What can you do with these stocks?

Well, there are a couple of things you could consider — after doing your own research, of course:

  1. Buy or short — For bullish stocks, this is probably the simplest thing you could do. Then just wait for it to go up and sell when you hit a profit target you’re comfortable with. This is only for upward-trending stocks we’re long on.

    For downward-trending stocks (those that we’re bearish on), you can short them. This is a little more advanced, so if you’re just getting started, I wouldn’t recommend this play. Remember, just like buying a stock, shorting comes with unlimited risk if the stock moves against you, so always have a clear stop-loss in place.
  2. You could buy an option.

    For bullish stocks, this means buying a call option.
    For bearish stocks, this means buying a put option.

    You know I’m not a fan of speculative plays, but every once in a while it doesn’t hurt to throw a little cash at a speculative option. Just remember, while options can move bigtime if the stock goes up… the downside of options is that you have a time limit on how quickly you need the stock to make that move.

    So think about your risk tolerance when you consider buying calls on bullish stocks or buying puts on bearish stocks.
  3. You could collect instant income.

    If you’ve been following me for any length of time, you know that I’m a big fan of income plays, because they massively increase your odds of winning. We do this by SELLING options instead of buying them.

    Not only do income plays let you get paid instantly — as soon as you place the trade. You massively increase your odds of winning, because the way we trade them, you don’t have to be 100% right about the direction of the stock.

    If you haven’t tried your hand at income trading yet, I urge you to try this exercise for yourself. Without risking any money, it will really let you see the power of income trading and why it’s my favorite method.

    Income plays on bullish stocks can be naked puts, covered calls or a bull put spread.

    Income plays on bearish stocks will be a little more complicated. But if you’re a more advanced trader, you can look into doing a short term bear call spread, which involves selling an out-of-the-money call and buying a call one strike price higher.

That’s all for now.

Stay tuned, because I’ll be sending you a new list of TrendPoint Best Trending Stocks every week! (usually Mondays)

Trade well,

Jack Carter