Broadcom closed at USD 370.83, reflecting a 0.97% decrease.

Recent large options trades in AVGO reveal a nuanced picture, with a multi-million dollar long-dated call purchase signaling bullish conviction, while a substantial out-of-the-money call sale suggests a strategy of collecting premium or expressing a more cautious view on the stock's ultimate upside potential.

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Options Indicators

AVGO’s implied volatility is 54.30%, and with an IV percentile of 74.90%, current option pricing sits in the elevated range, indicating options are relatively expensive versus the stock’s own recent volatility history. The IV/HV ratio of 1.12 also suggests implied volatility is running modestly above realized volatility, reinforcing the view that the market is assigning a premium to near-term uncertainty and that outright option purchases face a higher volatility cost. The Call/Put volume ratio is 1.09.

Large Trades

A CALL buy worth $3.93 million stood out as the largest bullish print, with 1,750 contracts of the September 18, 2026 $410.00 call purchased. With AVGO referenced at $370.825, this strike was out of the money at the time of the trade, making it a clear upside directional bet that requires further appreciation in the stock to gain intrinsic value by expiration. The choice to buy a relatively long-dated out-of-the-money call suggests the trader was positioning for a meaningful bullish move over time while defining risk through the premium paid.

A CALL sale worth $3.68 million was the other major trade, consisting of 2,800 contracts of the October 16, 2026 $470.00 call sold. With the stock at $370.825, this strike was also out of the money, and the trade reflects a bearish-to-neutral stance at that level, either expressing the view that AVGO is unlikely to rally that far by expiration or seeking to collect premium against a perceived upside ceiling. As a single-leg short call position, it carries negative directional exposure to further upside and signals caution toward an aggressive advance above $470.00.

Overall sentiment in AVGO large trades was slightly bullish, with $3.93 million in bullish flow versus $3.68 million in bearish flow, for a net bullish difference of $0.25 million. The directional edge is modest rather than overwhelming, but the balance of premium still leans positive because the largest upside expression was a long-dated call purchase, while the opposing flow came from an out-of-the-money call sale that appears more consistent with upside skepticism or premium harvesting than with outright aggressive downside positioning.

Strategy Reference

For traders looking to sell premium while managing risk in this elevated IV environment, a bear call spread using the October 2026 $470.00 call as the short leg and a higher strike like the $500.00 call as the long leg could define maximum risk and reduce margin requirements compared to a naked short call.