🐮 The "Cash Cow" Trade: How Broadcom Could Hand You 11% Returns Before Christmas

One ticker. One earnings catalyst. 9.2/10 conviction.

Inside this morning's DCG Mastermind live call, Jamar dropped what he's calling the "Cash Cow Trade" of the week—and it's not some speculative penny stock or hope-and-a-prayer play.

It's $AVGO (Broadcom), and the setup is absolutely pristine.

The Numbers That Matter

Entry Zone: $397-402

Target: $440+

Stop Loss: $385

Risk/Reward: 3:1

Conviction: 9.2 out of 10

That's an 11% upside with a clearly defined 4% downside.

For those keeping score, that's the kind of asymmetric bet that separates amateur traders from professionals.

Why Broadcom? Why Now?

Here's what most traders are missing:

1. Earnings Catalyst This WeekBroadcom reports earnings THIS WEEK, and historically they beat expectations the majority of the time. The street knows this—but retail is still sleeping.

2. Institutional Whale PositioningRemember that $152 MILLION position we talked about? Someone with serious capital rolled into January $360 ITM calls. That's not speculation. That's institutional conviction.

3. UBS Price Target: $472Wall Street analysts have a $472 price target on AVGO. From current levels ($397-402 entry), that's nearly 19% upside potential if they're even close to accurate.

4. AI Infrastructure PlayBroadcom designs custom AI chips for hyperscalers like Meta and Google. With NVIDIA's H200 China approval lighting up the semiconductor sector, ALL AI infrastructure names get a tailwind.

The Options Play

Recommended Strike: $400 Calls

Timeframe: Through earnings (this week)

This gives you:

Exposure to the earnings beat
Room for the stock to run post-announcement
Defined risk if thesis breaks

Why This Is A "Cash Cow"

Jamar doesn't throw around 9.2/10 conviction ratings lightly. This is one of his highest-rated setups of the entire month.

The term "Cash Cow" means:

✅ High probability setup (earnings history backs it up)

✅ Clear risk/reward (3:1 is institutional-grade)

✅ Defined catalyst (earnings = volatility = opportunity)

✅ Sector tailwinds (semiconductors leading the market)

The Broader Context

This isn't happening in a vacuum. Look at what's flowing into semiconductors right now:

$SMH (Semi ETF) - Entry $365, Target $380
$NVDA - China export approval catalyst
$CSCO - AI infrastructure networking play
$MBTS - China semi with squeeze potential

The entire sector is getting institutional inflows.

AVGO is just the highest conviction name in the basket.

Risk Management (The Part Most People Ignore)

Position sizing: Risk no more than 2% of your account on this trade

Stop loss: HONOR the $385 stop if it breaks

Fed week: Expect chop and volatility—don't overlever

Jamar's golden rule: "Preserve capital so you can stay in the game."

Earnings plays can move violently in both directions. The stop loss isn't a suggestion—it's your insurance policy.

How To Execute This

For Stock Traders:

Enter between $397-402
Set stop at $385
Target $440+ (scale out at milestones)

For Options Traders:

$400 Calls (expiring through earnings week)
Consider buying slightly OTM for leverage
OR buy ITM for higher delta/lower risk

For Conservative Traders:

Wait for earnings confirmation
Enter on pullback if it beats and dips
Use tighter stop loss post-earnings

The Bottom Line

When a 9.2/10 conviction "Cash Cow" trade hits the wire during a live trading call, you pay attention.

The setup is clean. The catalyst is clear. The risk/reward is institutional-grade. And the sector momentum is undeniable.

The question isn't whether this is a good trade. The question is: are you positioned to capitalize on it?

⚡ Want access to "Cash Cow" trades BEFORE the rest of the market catches on?

AI TradingSkool Paid Members receive:

✅ Daily "Cash Cow" trade alerts with exact entries, targets, stops

✅ Live trading room access during market hours (7:30 AM EST start)

✅ Real-time trade updates as setups develop

✅ Conviction ratings on every single trade (know which to size up)

✅ Earnings catalyst calendar with high-probability setups

✅ Options flow tracking (see institutional positioning)

✅ Weekly strategy calls with Jamar and the DCG team

👉 Stop trading blind. Start trading with precision.

The difference between seeing a trade idea on social media 3 days later vs. getting it LIVE in the room? Execution edge and profit potential.

This is how serious traders compound capital. 🎯

Trade what you see. Not what you think.

0 comments

AI Trading Hub: Learn & Profit

skool.com/ai-trading

🔹 Learn to trade crypto & options with AI. Share prompts, get weekly trade plans, and join live trading sessions.

Leaderboard (30-day)

+57