Broadcom closed at 416.08 USD, down 1.50%.

Despite the daily dip, a wave of bullish conviction swept through the options pits. A single, massive out-of-the-money put sale dominated the session, totaling $1.01 million in premium. This trade, targeting a strike far below the current price, signals a strong expectation that AVGO will remain well-supported, with a sophisticated trader collecting substantial premium while betting against any severe decline through late 2026.

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Options Indicators

AVGO’s implied volatility stands at 49.69%, and with an IV percentile of 34.66%, current option volatility sits in a broadly neutral zone rather than an unusually cheap or expensive extreme. At the same time, the IV/HV ratio of 1.21 indicates implied volatility is running modestly above historical realized volatility, suggesting the options market is pricing in somewhat richer forward uncertainty than what the stock has recently delivered, but not to an excessive degree. The Call/Put volume ratio is 0.78.

Large Trades

A PUT sale worth $1.01 million was the standout large trade, with 2,720 contracts sold at the 340.0 strike expiring on 2026-09-25. With AVGO referenced at $416.08, this put was out-of-the-money at the time of execution, making it a moderately bullish options sale. Strategically, selling an out-of-the-money put typically reflects a willingness to collect premium while expressing confidence that the stock will remain above the strike through expiration, or at least not fall sharply enough to make the position unattractive. Overall sentiment from the full large-trade flow was clearly bullish. Total bullish premium reached $1.01 million versus bearish flow of $0.00 million, leaving a net difference of $1.01 million to the bullish side. With the only notable large trade being an out-of-the-money put sale, the options activity points to a constructive outlook in AVGO, suggesting traders were more focused on premium collection and downside confidence than on positioning for a meaningful decline.

Strategy Reference

For those looking to replicate this sentiment with a lower margin requirement, consider selling a put spread rather than a naked put. For instance, a trader might sell the 340 put while buying a lower-strike put, such as the 300 strike, to define risk and collect a portion of the featured trade's premium with a high probability of success.