AVGOBroadcom
StrategySystematic Trend — Bull Call Debit Spread
StructureBuy $390 Call / Sell $415 Call · exp 31 Jul 2026
DirectionBullish · defined risk
Entry$6.64 net debit
Breakeven$396.64
Risk : Reward2.77 : 1
ResultClosed 22 Jul 2026 at $10.50 net credit — +$3.86 per spread, +58% on risk (23 days held)
Broadcom trading above its 200-day moving average with strong 12-month momentum — a walk-forward-validated trend signal. Expressed as a defined-risk debit spread (max loss capped at the premium paid). Plan: hold toward expiry; exit early only if the trend breaks (close below the 200-day MA). Outcome: the trend held — AVGO ran up through the short strike, and the spread was closed on a working limit order 9 days before expiry at $10.50 net credit against the $6.64 debit paid, a +58% return on the amount risked. Taken off early rather than held to expiry: with the position near its maximum value, the remaining upside was small relative to the risk of giving it back.