Broadcom closed at USD 364.03, up 0.43 percent.
AVGO’s options tape was dominated by a $4.61 million net-credit bear put spread, pushing total bearish flow to $47.66 million against only $18.21 million in bullish activity. The resulting $29.44 million net bearish imbalance overwhelmed a modest $2.60 million synthetic long, signaling that institutional-sized flow was decisively negative despite the stock’s slight gain.
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Options Indicators
AVGO’s implied volatility is 52.56%, and with an IV percentile of 58.96%, current option pricing sits in a neutral volatility regime rather than an extreme low or high. At the same time, the IV/HV ratio of 1.17 shows implied volatility is running modestly above historical volatility, suggesting the market is assigning a somewhat higher premium to forward uncertainty, but not to a degree that makes options look unusually rich.
The Call/Put volume ratio is 1.26.
Large Trades
A bullish synthetic long worth a net debit of $2.60 million stood out as one of the day’s key combination trades. This structure paired the purchase of 2,000 Sep. 17, 2027 $460.00 calls with the sale of 2,000 Sep. 17, 2027 $300.00 puts, with both legs out of the money versus the $364.03 reference stock price. As a synthetic long, it is effectively a leveraged upside expression that mimics long stock exposure while requiring a defined net cash outlay of $2.60 million, signaling a directional bullish bet on AVGO over the long term rather than a simple premium-collection strategy.
A bearish bear put spread with a net credit of $4.61 million was the other featured large trade. The position sold 2,075 Aug. 21, 2026 $420.00 puts and bought 1,050 Aug. 21, 2026 $430.00 puts, with both strikes in the money relative to the $364.03 stock reference. Despite the unusual net-credit profile, the structure was identified as a bear put spread and reflects a downside-oriented positioning or hedge, with the trader using the spread to express a bearish view while taking in $4.61 million upfront. Overall, the bulk-order flow leaned clearly bearish, with total bearish activity at $47.66 million versus bullish activity at $18.21 million, leaving a net bearish imbalance of $29.44 million. The conclusion is that institutional-sized options flow in AVGO was decisively negative, with downside structures dominating the tape and the bullish synthetic long appearing more like a selective counterbalance than a shift in broader sentiment.
Strategy Reference
For sellers seeking a low assignment probability, the Sep. 17, 2027 $300.00 put that was already sold in the synthetic long remains a key OTM reference, while traders preferring limited margin exposure could consider a defined-risk put credit spread below $330.00 to align with the prevailing bearish flow without posting the full cash-secured put requirement.
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