Broadcom Inc. closed at $396.81, up 2.67%.

The session's options activity was highlighted by a single, large, bullish call purchase, signaling a strong directional bet on the stock's continued ascent.

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Options Indicators

AVGO’s implied volatility stands at 54.92%, and with an IV percentile of 75.70%, current option volatility is in the elevated range, indicating options are priced expensively relative to the stock’s own recent history.

The IV/HV ratio of 1.30 further suggests the implied volatility premium is running above realized volatility, meaning the market is embedding a relatively rich forward volatility expectation into option prices.

The Call/Put volume ratio is 3.04.

Large Trades

A CALL buy worth $1.91 million was the standout large trade, with 1,445 contracts purchased at the 387.50 strike expiring on 2026-07-24.

With AVGO referenced at $396.81, this call was already in the money at execution, which makes the trade a clearly bullish expression with built-in intrinsic value.

The buyer is positioning for continued upside over the next year, using an in-the-money call to gain directional exposure with a balance of leverage and lower time-value risk than a farther out-of-the-money contract.

Strategically, this reads as a straightforward upside bet rather than a premium-collection or hedging structure.

Overall sentiment is clearly bullish.

Total bullish large-trade flow reached $1.91 million versus $0.00 million in bearish flow, leaving a net difference of $1.91 million to the bullish side.

With all of the notable large-trade activity concentrated in an in-the-money call purchase, the options flow suggests traders are expressing confidence in further upside for AVGO rather than defensively hedging or fading the current level.

Strategy Reference

For traders looking to sell premium while managing assignment risk, selling out-of-the-money calls, such as at the $420.00 strike, could offer a low probability of assignment in the near term; alternatively, a bull call spread using a long $395.00 call and a short $415.00 call can define risk and reduce margin requirements compared to a naked long position.