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!
