Broadcom closed at $334.59, up 1.78% from the prior close.
Large options flow featured a single $2.08 million put sale at the $240 strike expiring in 2027, a clear vote for limited long-term downside. A smaller $352,000 call sale at $420 added a capped-upside overlay, but overall premium-selling tone leaned bullish. With shares advancing and volatility depressed, institutions are using deep out-of-the-money options to harvest income while expressing confidence in a wide trading range.
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Options Indicators
Broadcom’s implied volatility is 40.40%, and with an IV percentile of 12.75%, current volatility sits on the low side relative to its own recent history, indicating that options are cheaply priced rather than expensive. The IV/HV ratio of 1.12 also suggests implied volatility is running only modestly above realized volatility, reinforcing the view that current option premiums are relatively subdued rather than stretched.
The Call/Put volume ratio is 1.67, showing roughly five call contracts traded for every three puts and reflecting a bullish tilt among retail and smaller institutional participants. That ratio, combined with cheap IV, makes long call structures or put-selling strategies comparatively attractive, though low volatility also means sellers receive less absolute premium per contract than during high-IV regimes.
Large Trades
A put sale worth $2.08 million was the standout large trade, with 2,500 contracts sold at the 240.0 strike expiring on 2027-06-17. With AVGO referenced at 334.59, this put was out of the money, making it a moderately bullish income-style position that benefits if the stock stays above the strike into expiration. Strategically, this type of trade typically reflects confidence that downside risk to 240.0 is limited, while also indicating a willingness to accumulate shares at a much lower effective level if assigned.
A call sale worth $352,000 was the other displayed large trade, involving 4,701 contracts sold at the 420.0 strike expiring on 2026-11-20. Given the current stock reference of 334.59, this call was also out of the money, pointing to a bearish-to-neutral stance that caps upside participation and expresses the view that AVGO is unlikely to rally through 420.0 by expiration. Overall, the large-trade flow leans bullish, as the dominant premium sale was the much larger out-of-the-money put write, which outweighed the smaller bearish call-selling activity and suggests institutional positioning is more consistent with confidence in downside support than with expectations of a major near-term breakdown.
Strategy Reference
For a low assignment probability put sale, consider the $250 strike with 30 to 45 days to expiration, where delta is typically below 0.15 given current IV; alternatively, a $240/$200 bull put spread reduces margin requirements while still monetizing the cheap-IV regime and aligning with the large-trade put sale’s accepted downside zone.
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