Broadcom closed at $328.75, down 4.52%.
Large options trades were mixed but leaned mildly bearish. A $2.13 million net credit bear call spread was the largest displayed trade, while a $2.44 million put sale offered downside support. The combination reflects institutional interest in capping upside and collecting premium rather than positioning for a strong breakout.
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Options Indicators
Broadcom’s implied volatility is 40.63%, and with an IV percentile of 12.75%, current volatility sits on the low side of its recent range, indicating that options are cheaply priced rather than expensive. The IV/HV ratio of 1.23 shows implied volatility is running modestly above realized volatility, suggesting the market is assigning a somewhat higher forward volatility premium, but overall option pricing still looks relatively inexpensive in historical terms. The Call/Put volume ratio is 1.38.
Large Trades
A bear call spread with a $2.13 million net credit was the largest displayed trade, built by selling 1,380 March 19, 2027 $380.00 calls and buying 1,380 March 19, 2027 $470.00 calls, with both strikes out of the money versus the $328.75 stock reference. This is a classic bearish call spread: the trader collects premium upfront while capping risk through the long higher-strike call, expressing the view that AVGO is unlikely to rally above the short call strike by expiration. The net-credit structure points to a premium-collection strategy with a bearish to moderately bearish directional bias rather than an outright aggressive downside bet.
A put sale worth $2.44 million was the other highlighted block, involving the sale of 2,000 March 19, 2027 $280.00 puts, also out of the money. Selling this put reflects a bullish to neutral-bullish stance, as the trader is effectively betting AVGO will remain above $280.00 through expiration and is willing to collect premium in exchange for taking downside assignment risk if shares fall materially. Overall, the large-trade flow leans mildly bearish: although there is meaningful put-selling support below the market, the most prominent structured trade is a sizable bearish call spread, and the broader bulk-order tone suggests institutions are more focused on capping upside and monetizing premium than positioning for a strong upside breakout.
Strategy Reference
For a low assignment probability put sale, consider the $250.00 strike, which is further below the market than the $280.00 block and offers a wider margin of safety against a downside move.
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