Analysis of Reddit Post on AVGO 370c Options 678% Gain Claim

On November 24, 2025, a Reddit user claimed a 678% gain from AVGO 370-strike call options bought at $1.26 on November 21 [3]. AVGO’s stock rallied 8.81% from $340.20 (Nov21 close) to $378.42 (Nov24 close) [0], driven by AI infrastructure momentum (Google Gemini 3 adoption, $10B OpenAI deal) and strong Q3 AI revenue growth (63% YoY) [1]. A back-of-the-envelope calculation confirms the gain is plausible: if the option’s intrinsic value was $8 (378-370) plus $1 time value, the price could rise to ~$9, translating to a ~614% gain—close to the claimed 678% [0]. However, comments alleged the screenshot was fake due to inconsistent font sizes [3].

1. AI Catalysts
   : AVGO’s stock surge aligns with broader AI infrastructure demand, highlighting the impact of hyperscaler announcements on semiconductor stocks [1].
2. Option Risk vs Reward
   : Short-term options (like the 370c) carry high time decay but can yield extreme gains if timed with market rallies [0].
3. Social Media Misinformation
   : The fake screenshot allegation underscores the need for verifying unsubstantiated claims in investment discussions [3].

• Risks
  : High valuation (P/E ratio of 88.2 vs S&P median of 22.8) [2], potential misinformation from fake screenshots [3], and elevated option trading risk due to time decay.
• Opportunities
  : Sustained AI infrastructure growth (driven by Google, OpenAI) [1] and AVGO’s strong earnings trajectory (next report Dec11) [1].

• AVGO’s stock gained 8.81% between Nov21-Nov24 [0].
• The claimed 678% option gain is plausible but unconfirmed due to missing exact option price data.
• Conflicting views exist: plausible market-driven gain vs fake screenshot allegation [3].
• Key factors to monitor: AVGO’s Dec11 earnings, AI infrastructure demand, and option expiry dates [1].