Broadcom Inc. closed at $380.91, slipping 0.60%.

A single, massive $6.54 million bullish put spread dominated AVGO's options flow, signaling a high-conviction institutional bet that the stock will hold firmly above $320. Executed as a net credit trade across long-dated maturities, the strategy leveraged elevated implied volatility to collect premium while defining risk, offering a uniquely constructive but non-aggressive posture in the semiconductor giant.

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Options Indicators

AVGO’s implied volatility is 55.63%, and with an IV percentile of 78.88%, current volatility is sitting in the elevated range, indicating that options are priced expensively versus most of the past year. The IV/HV ratio of 1.34 further shows implied volatility is running above realized volatility, suggesting the options market is embedding a meaningful premium for forward uncertainty. In this setup, outright option buyers are paying up for volatility, while premium-selling structures or defined-risk spreads may offer better efficiency depending on the trade thesis. The Call/Put volume ratio is 1.21.

Large Trades

A bullish put spread worth $6.54 million stood out as the key large trade in AVGO, structured by selling 1,080 contracts of the June 17, 2027 $320 put for $4.15 million while buying 1,080 contracts of the December 18, 2026 $320 put for $2.38 million. This was executed for a net credit and reflects a premium-collection strategy with a bullish bias. Both legs are out of the money versus the reference stock price of $380.91, indicating the trader is positioning for AVGO to remain above $320 over time while defining downside exposure through the purchased put. Strategically, this type of position expresses confidence that the stock can stay firm above the strike, while also using the long put as protection against a sharper decline before the longer-dated short leg expires. Overall sentiment in AVGO large trades was clearly bullish, with total bullish flow of $6.54 million against bearish flow of $0.00 million, leaving a net difference of $6.54 million to the bullish side. The directional judgment is therefore decisively positive. The fact that the only significant large trade was a net-credit bullish put spread, and that it was placed with both strikes safely below the current stock price, suggests institutional sentiment is constructive rather than aggressive, favoring downside premium collection and a view that AVGO is likely to hold above key lower support levels rather than break sharply lower.

Strategy Reference

For traders seeking a similar high-probability, low-management approach in this elevated IV environment, selling the out-of-the-money $320 put in nearer-dated expiries could provide an attractive premium capture point, with a strike roughly 16% below the current price reflecting a low assignment probability for those comfortable with margin requirements.