Broadcom’s shares closed at $364.54, up 0.52%, after opening at $363.23, fluctuating between $359.29 and $366.55 on volume of about 20.5 million shares, and ending after-hours trading around $365.73.
The options tape showed a dominant $957,600.00 out-of-the-money call sale in the 380 strike for 2026-10-16, while a much smaller $72,500.00 call purchase in the 377.5 strike represented a minor upside bet. The overall flow leaned bearish-to-neutral as large traders focused on premium collection rather than chasing upside.
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Options Indicators
Broadcom’s implied volatility is 39.89%, and with an IV percentile of just 5.18%, current option volatility sits on the low side versus its own historical range, indicating that options are cheaply priced rather than expensive. At the same time, the IV/HV ratio of 1.21 shows implied volatility is running modestly above realized volatility, suggesting the market is still embedding some premium for forward uncertainty, but overall pricing remains relatively subdued.
The Call/Put volume ratio is 3.22.
Large Trades
A call sale worth $957,600.00 was the largest large trade on the tape, with 1,175 contracts of the 380.0 strike call sold for the 2026-10-16 expiration. With AVGO referenced at 364.54, this call was out of the money at the time of the trade. The transaction points to a bearish-to-neutral stance, as the seller appears to be fading upside beyond 380.0 and likely seeking premium income while expressing the view that the stock may remain below that strike into expiration.
A call purchase worth $72,500.00 was the other notable block, consisting of 1,813 contracts of the 377.5 strike call bought for the 2026-09-23 expiration. Given the 364.54 reference price, this option was also out of the money, making it a higher-conviction upside speculation or short-term directional bet on a move above 377.5. Even so, the overall large-trade picture remains bearish, because the dominant flow was the much larger out-of-the-money call sale, which outweighs the smaller bullish call buying and suggests institutional positioning was tilted toward capped upside and premium collection rather than aggressive upside participation.
Strategy Reference
For a low assignment probability, a premium seller could consider the 380.0 strike call for the 2026-10-16 expiration, mirroring the largest trade, though a bullish call spread using the 377.5/380 strikes offers defined risk for traders who prefer not to post substantial margin on a naked call sale.
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