Broadcom closed at $422.40, a decline of 1.25%.

Heavy institutional flow dominated Broadcom's options market, headlined by a $1.24 million long-dated put purchase at the $320 strike. This single bearish bet, expiring in December 2026, overwhelmed negligible bullish activity and pushed the session's net premium deeply into negative territory, signaling a strong conviction in protecting against or profiting from a material long-term decline.

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Options Indicators

AVGO’s implied volatility stands at 51.60%, and with an IV percentile of 51.79%, current volatility conditions sit in a neutral range rather than at an extreme. In other words, options are not especially cheap or especially expensive relative to their own recent history, though the IV/HV ratio of 1.27 shows implied volatility is still running above realized volatility, suggesting the market is assigning a modest premium to forward uncertainty. The Call/Put volume ratio is 1.00.

Large Trades

A PUT buy worth $1.24 million was the standout large trade, consisting of 1,200 contracts of the December 18, 2026 $320.00 put purchased while AVGO was referenced at $422.40. This strike sits out of the money, so the buyer is paying premium for downside protection or a longer-dated bearish directional bet rather than immediately intrinsic value. Given the long tenor and the meaningful premium committed, this trade suggests the participant is positioning for a material decline over time or establishing a hedge against a significant drawdown in AVGO.

Overall sentiment in AVGO’s large-trade flow was clearly bearish, with total bullish premium at $0.02 million versus total bearish premium at $1.24 million, leaving a net bearish difference of $1.22 million. The directional read is decisively negative because the order flow was dominated by a sizable long-dated put purchase, while bullish activity was minimal and limited to a much smaller put sale. In practical terms, the large-trade tape points to investors placing far greater emphasis on downside exposure and protection than on expressing confidence in near-term upside.

Strategy Reference

For those fading the bearish sentiment, a short put could be sold at the $320 strike, which sits far out of the money and aligns with the strike where the large premium was captured, offering a wide downside cushion; alternatively, a bull put spread could be considered to reduce margin requirements if selling the naked put is not feasible.