Broadcom Inc. closed at USD 380.00, down 3.17%.
Despite the daily decline, options flow turned decisively positive, with total bullish large-trade volume reaching $1.24 million against $0.00 million in bearish flow. The largest positions consisted of a long call purchase at the $430.00 strike expiring in September 2026 and a short put sale at the $380.00 strike expiring in August 2026, signaling that institutional and large retail traders are positioning for sustained upside over a long-dated horizon.
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Options Indicators
AVGO’s implied volatility is 51.18%, and with an IV percentile of 48.21%, current option pricing sits in a neutral volatility regime rather than at an extreme. The IV/HV ratio of 1.22 indicates implied volatility is running modestly above realized volatility, suggesting the market is assigning a somewhat richer premium to future movement, but not to a level that would make options look clearly overextended. Overall, AVGO’s options appear fairly priced to slightly rich, without signaling either unusually cheap or unusually expensive volatility conditions.
The Call/Put volume ratio is 1.33.
Large Trades
A CALL buy worth $0.75 million was the largest displayed large trade, with 1,152 contracts bought at the $430.00 strike expiring on 2026-09-18. With the stock reference price at $380.00, this call was out of the money, making it a clearly bullish directional position that targets meaningful upside over a long-dated horizon. The trade suggests the buyer was willing to pay premium for leveraged exposure to a continued advance in AVGO rather than seeking income, which points to conviction in further price appreciation.
A PUT sale worth $0.49 million was the other notable large trade, with 1,030 contracts sold at the $380.00 strike expiring on 2026-08-21. Against the $380.00 stock reference price, this put sits essentially at the money, and the sale reflects a bullish to neutral-bullish stance through premium collection. Strategically, this type of trade indicates the seller is comfortable owning the stock around the strike or expects AVGO to remain firm enough for the option to decay, reinforcing a constructive outlook rather than downside protection.
Overall sentiment in AVGO large trades was decisively bullish, with total bullish flow of $1.24 million versus bearish flow of $0.00 million, leaving a net difference of $1.24 million to the upside. The directional judgment is clearly bullish: both highlighted trades aligned positively, with one expressing upside participation through long calls and the other harvesting premium through short puts near the current stock level. Taken together, the flow suggests traders are leaning toward sustained strength in AVGO rather than preparing for a meaningful decline.
Strategy Reference
For a low assignment probability on a short put, a seller could consider the $320.00 strike expiring in 2026, placing it roughly 15.79% below the current $380.00 reference price while still collecting premium in line with the bullish flow theme.
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