Broadcom’s shares closed at $322.23, down 1.18 percent.
Broadcom’s options flow was dominated by two large trades that together signaled a bullish long-term conviction. A $1.14 million put sale below the market and a $303,400 call purchase above the market highlighted the session, with a Call/Put volume ratio of 1.30 reinforcing the constructive tone. Traders leaned on premium-selling for downside support while buying upside calls for leveraged participation, suggesting confidence in resilience and future appreciation over the medium to long term.
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Options Indicators
Broadcom’s implied volatility is 55.50%, and with an IV percentile of 77.69%, current option volatility is in the elevated range, indicating that options are priced expensively versus their own recent history. The IV/HV ratio of 1.24 further suggests implied volatility is running above realized volatility, meaning the options market is building in a richer premium for expected movement and buyers are paying up for that protection or leverage. The Call/Put volume ratio is 1.30.
Large Trades
A put sale worth $1.14 million was the largest displayed trade, with 1,400 contracts of the January 15, 2027 $280.00 put sold at a T/O of 8.16. With AVGO referenced at $322.23, this strike sat out of the money, making the trade a moderately bullish to neutral-income stance: the seller is effectively expressing confidence that shares can stay above $280.00 into expiration, while collecting premium and potentially signaling willingness to own the stock at a lower effective entry if assigned. The long-dated tenor also suggests patience and a relatively strong conviction that downside risk will remain contained over time.
A call purchase worth $303,400 was the other highlighted trade, consisting of 2,050 contracts of the November 20, 2026 $380.00 call bought at a T/O of 1.48. That strike was also out of the money versus the $322.23 reference price, so this was a straightforward bullish upside bet on a meaningful rally by late 2026. The buyer paid premium for convex exposure rather than stock, indicating an expectation of higher volatility-adjusted upside and a willingness to risk the premium in exchange for leveraged participation if AVGO advances toward or through $380.00.
Overall, the large-trade flow was clearly bullish. The standout activity combined premium-selling put exposure below the market with an outright purchase of upside calls above the market, a pairing that points to traders leaning constructive on both downside support and future appreciation. With all highlighted bulk flow aligned to the bullish side and no meaningful bearish large-trade presence, the options activity suggests confidence that AVGO can remain resilient on pullbacks while still offering upside potential over the medium to long term.
Strategy Reference
For a lower assignment probability on the put side, a seller could target an out-of-the-money strike near the $280.00 level or lower while keeping expiration within a closer time frame; alternatively, a bull put spread such as selling the $280.00 put and buying a lower strike can reduce margin requirements while still expressing a moderately bullish to neutral stance.
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