Broadcom (AVGO) closed at 389.28 USD, up 0.37% from the previous close.

AVGO saw a burst of institutional activity, headlined by a $2.03 million call calendar spread designed to capture upside toward $392.50–$402.50. Alongside that, a $0.35 million out-of-the-money put sale reinforced the optimistic tone, with traders expressing confidence that the stock will hold above $380.00 into mid-2026.

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Options Indicators

AVGO’s implied volatility is 53.20%, and with an IV percentile of 64.54%, current volatility sits in a broadly neutral range rather than an extreme high or low. The IV/HV ratio of 1.21 indicates implied volatility is running above historical volatility, suggesting the options market is pricing in somewhat richer forward uncertainty, but not to a level that would classify contracts as outright expensive. The Call/Put volume ratio is 1.10.

Large Trades

A call calendar-style spread package with a vertical structure, totaling $2.03 million in premium flow, was the largest highlighted trade. This four-leg position bought 1,543 Aug. 7, 2026 $392.50 calls for $1.25 million while selling 1,543 Aug. 7, 2026 $402.50 calls for $0.75 million, and also sold 1,543 Jul. 31, 2026 $395.00 calls for $0.03 million plus 1,543 Jul. 31, 2026 $405.00 calls for $0.00 million. Using the stated premium flows, the strategy brought in $0.77 million from the short call legs and paid $1.25 million for the long call leg, for a net premium of -$0.48 million, making it a net-debit position. With all strikes above the $389.28 reference stock price, the structure was established using out-of-the-money calls and points to a moderately bullish directional view, aiming to benefit from upside toward the $392.50–$402.50 area over the longer dated expiry while using the near-term short calls to help offset entry cost and generate income.

A put sale worth $0.35 million was the other displayed large trade, involving the sale of 2,895 Jul. 31, 2026 $380.00 puts. Since the strike sits below the $389.28 reference stock price, the option was out of the money at execution, and the trade reflects a bullish-to-neutral stance: the seller collects premium while expressing confidence that AVGO will remain above $380.00 into expiration, or else be willing to accumulate shares effectively below the current market. Strategically, this is consistent with income generation and downside entry positioning rather than outright bearish protection.

Overall, the large-trade flow leans bullish on AVGO. The dominant transaction was a net-debit multi-leg call structure that sought upside exposure through higher-dated calls while reducing cost through short near-term premium, and the second key trade was an out-of-the-money put sale that also signaled constructive sentiment and willingness to own weakness. Although there was some bearish premium present in the broader large-trade mix, the character of the biggest trades suggests institutions were more focused on positioning for continued strength than preparing for a downside break.

Strategy Reference

For traders sharing the bullish outlook but seeking a defined-risk approach, a bull call spread using the same August 2026 expiry—buying the $392.50 call and selling the $402.50 call—mirrors the core directional view of the institutional flow while capping both cost and risk.