Broadcom's $6.97B Surge to Rank 12th Amid Trump Tariff Threats and Regulatory Pressures

Broadcom (AVGO) fell 1.57% on August 15, with a trading volume of $6.97 billion, marking a 42.59% increase from the previous day and ranking 12th in market activity. The stock’s decline was driven by escalating concerns over U.S. semiconductor policy and global regulatory pressures. Investors reacted to former President Trump’s renewed threats of 300% tariffs on chip imports, which intensified sector-wide uncertainty. The stock’s intraday range of $299.76 to $311.50 reflected heightened volatility, with options data showing aggressive bearish positioning through 1.77 million contracts on the $307.5 call option.

Regulatory scrutiny further amplified risks for Broadcom, a key player in AI infrastructure. Chinese authorities’ recent demands for tech firms to justify purchases of Nvidia’s H20 chips underscored potential cross-border supply chain disruptions. Technical indicators highlighted a short-term bearish bias, with AVGO trading near its 200-day moving average of $220.19 and RSI at 65.43. Bollinger Bands positioned the stock close to the $276.90 lower band, suggesting possible support levels. High gamma and theta values indicated sensitivity to price swings and urgency for options traders.

Strategic options activity focused on high-leverage call contracts, including AVGO20250822C307.5, which offered a 76.03% leverage ratio and high liquidity. Traders weighing defensive strategies monitored the $296.38 middle Bollinger Band and $276.90 lower band as critical levels. A breakdown below $296.38 could trigger renewed interest in put options, while a rebound above $310 might attract aggressive buyers. The Nasdaq Semiconductor Index declined 0.37%, reflecting broader sector fragility amid policy uncertainties.

Backtesting of AVGO’s performance following a 3% intraday drop revealed recovery potential. The stock showed a 58.16% win rate over three days, 63.27% over 10 days, and 77.21% over 30 days. Maximum returns reached 19.07% by day 59, indicating short-term rebound opportunities. A strategy based on high-volume stocks from 2022 to present generated $10,720 in total profit, with cumulative returns of 1.08 times initial investment, underscoring the potential of liquidity-driven trading approaches in volatile markets.