Broadcom Inc. closed at 358.76 USD, down 2.63%.

AVGO options displayed notable bearish activity, headlined by a $2.28 million deep out-of-the-money put purchase on the June 2027 $200 strike. A second large put buy worth $1.52 million on the August 2026 $355 strike reinforced downside positioning. Together, the largest displayed trades point to institutional caution and a willingness to pay premium for long-dated tail-risk protection or directional downside exposure.

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Options Indicators

AVGO’s implied volatility is 51.51%, and with an IV percentile of 51.39%, current volatility sits in a neutral historical range rather than at an extreme. Combined with an IV/HV ratio of 1.16, the options market is pricing implied volatility modestly above realized volatility, suggesting premiums are neither especially cheap nor notably expensive overall, but are carrying a slight forward-looking volatility premium. The Call/Put volume ratio is 0.93.

Large Trades

A put buy worth $2.28 million was the largest displayed trade, with 5,000 contracts of the June 17, 2027 $200.00 put purchased. With AVGO referenced at $358.76, this strike sits well out of the money, making it a lower-delta but high-conviction bearish structure that targets a substantial downside move over a long-dated horizon. The trade signals either a willingness to pay premium for tail-risk protection or a directional bet that AVGO could face meaningful weakness over time.

Another put buy worth $1.52 million came in through 3,161 contracts of the August 31, 2026 $355.00 put. With the stock at $358.76, this put was slightly out of the money, giving it a more immediate and sensitive bearish profile than the lower-strike 2027 position. Strategically, this looks like a more direct downside wager or near-the-money hedge, suggesting the buyer was positioning for weakness with relatively higher responsiveness to any short-term decline in the shares.

Overall, the large-trade flow leans clearly bearish. The displayed trades were both outright put purchases, and they were concentrated in out-of-the-money downside protection and directional downside exposure rather than premium-selling structures. Although there was some smaller bullish put selling elsewhere in the broader flow, the dominant institutional activity pointed to caution and downside concern, implying that large traders were primarily positioning for weakness in AVGO rather than expecting sustained upside.

Strategy Reference

For premium sellers seeking low assignment probability, the June 2027 $200 put could serve as a defined-risk short strike, while traders wary of margin requirements might consider a bear put spread such as buying the August 2026 $355 put and selling a lower strike put to offset cost.