Weekly Options Strategy – CALL on AVGO + Tactical PUTs on DLTR,

Idea linked to AVGO – Full structured breakdown for the week ahead

This week I’m deploying a mixed options strategy based on high-probability setups and strict risk management.

We’re combining a bullish CALL play on AVGO ahead of earnings, with three tactical PUT ideas on companies that meet our 20-point bearish checklist across technical, fundamental, and macro filters.

This isn’t guesswork.
✅ We only enter when multiple signals align in our favor.
📌 This is a game of probability, not certainty – and we want the odds stacked heavily on our side.

🟢 Bullish Setup – AVGO (Broadcom)
Current price: $237.09 (adjusted post-split)

Catalyst: Earnings on Thursday, June 6

Price target: $255–$265

✔️ Why this setup stands out:
✅ Leading sector (semiconductors + AI tailwinds)
✅ Consistent EPS & revenue growth
✅ Increasing institutional volume
✅ Clean technical breakout (MA50 > MA200)
✅ RSI healthy, not overbought
✅ Strong momentum into earnings
✅ Macro support for chip stocks

🛡️ Risk Plan:
– Partial entry before earnings
– Add only on post-earnings confirmation
– Stop-loss below $225
– Max risk per trade: <6% of total capital

🎯 This is a high-conviction setup, backed by fundamentals and strong technicals.

🔴 Bearish Setups – Tactical PUTs with Breakdown Potential
These three stocks meet our 20/20 bearish checklist, showing clear signs of technical deterioration and weak fundamentals.

1. DLTR – Dollar Tree
Current price: $90.36

Earnings: Wednesday, June 5

Downside target: $82–$85

❌ Key bearish signals:
– Weak guidance and margin pressure
– Inflation hurting target customer base
– Strong technical downtrend
– Rejected at MA200
– No positive catalysts in sight

🎯 If earnings disappoint, a breakdown toward $82 support is likely.

2. SIG – Signet Jewelers
Current price: $66.57

Target: $58–$60

❌ Structural deterioration:
– Discretionary sales declining
– Momentum in EPS fading
– Head & Shoulders pattern activated
– Low volume and no institutional support

🎯 A break below support could trigger a rapid move to the $58 zone.

3. NIO – NIO Inc.
Current price: $3.54

Target: $2.70–$2.50

❌ Clear red flags:
– Persistent losses and cash burn
– Weak EV sales in China
– Geopolitical and tariff pressure
– Fading volume and buyer interest
– No short-term catalyst

🎯 The trend is clearly bearish – we’re targeting continuation toward $2.50 support.

🧠 Strategic Recap
✅ Bullish CALL on AVGO with strong setup ahead of earnings
✅ Bearish PUTs on DLTR, SIG, and NIO with deteriorating fundamentals and clean charts
✅ Each trade risk-adjusted under 6% of total capital
✅ Executing only when the majority of signals point in the same direction

📌 We don’t need to be right 100% of the time – we just need the probabilities to be in our favor when we enter.

💬 Drop your thoughts or follow if you’re tracking these setups too – I’ll post follow-ups after earnings.

#AVGO #DLTR #SIG #NIO #OptionsTrading #CALLStrategy #PUTOptions #TechnicalAnalysis #EarningsPlays #TradingWithDiscipline #ProbabilityTrading #RiskManagement #TradingPlan #TradingView