Broadcom closed at $387.84, up 4.73%. Options flow was dominated by a massive $4.45 million bull call spread, signaling strong institutional conviction for long-term upside. The trade, which targets the $450.00–$560.00 range by October 2026, far overshadowed a tiny $0.01 million deep-OTM put purchase, painting a decisively bullish picture as the stock rallies sharply.

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Options Indicators

AVGO’s implied volatility is 54.06%, and with an IV percentile of 70.92%, current option volatility sits in the elevated range, indicating options are priced relatively expensively versus their own recent history. The IV/HV ratio of 1.29 further suggests implied volatility is running above realized volatility, meaning the market is assigning a premium to forward uncertainty. In this setup, outright option buying faces a richer premium backdrop, while premium-selling structures or defined-risk spreads may offer a more cost-efficient way to express a view.

The Call/Put volume ratio is 1.20.

Large Trades

A bullish call spread with a net premium outlay of $4.45 million was the dominant large trade, consisting of the purchase of 2,159 October 16, 2026 $450.00 calls and the sale of 2,159 October 16, 2026 $560.00 calls. Both strikes are out of the money versus the reference stock price of $387.84. This is a classic directional bullish strategy in which the trader pays a net debit to gain upside exposure while capping maximum profit at the higher strike. The structure suggests an investor looking for a meaningful advance in AVGO over the long term, but with defined risk and lower upfront cost than an outright call purchase, making it an efficient way to express bullish conviction.

A PUT buy worth $0.01 million was the other notable large trade, involving 1,500 August 21 $230.00 puts. With the stock at $387.84, the strike is deeply out of the money, indicating a bearish position that is either a low-cost downside hedge or a speculative tail-risk wager on a sharp selloff. Given the small trade amount relative to the call spread, it does not materially alter the broader tone of the flow and instead looks more like limited-premium protection or opportunistic downside exposure.

Overall, the large-trade picture is clearly bullish for AVGO. The sentiment is overwhelmingly driven by the sizable long-dated bull call spread, which reflects deliberate upside positioning through a defined-risk options structure rather than short-term chasing. The only bearish flow was a very small out-of-the-money put purchase, which appears minor in comparison. Taken together, the order flow points to institutional-style confidence in further upside, with traders favoring structured bullish exposure over defensive positioning.

Strategy Reference

Given elevated IV, selling the October 16, 2026 $300.00 put, deeply OTM, could let premium sellers capitalize on rich volatility with a low assignment probability, while those seeking upside participation with reduced cost may consider replicating the dominant bull call spread.