Broadcom closed at USD 416.05, registering a −0.01 % change.

A massive, multi-legged trade dominated AVGO’s options landscape, displaying strong bullish conviction. A $1.28 million net-credit synthetic long position eclipsed a single $1.29 million protective put purchase, creating a decisively bullish sentiment skew. The overall institutional flow leaned heavily to the upside, with the complex bullish structure far outweighing the isolated bearish hedge in strategic significance and directional implication.

>>>Click to claim your commission-free cards before trading!

Options Indicators

AVGO’s implied volatility is 49.59%, and with an IV percentile of 33.47%, current option volatility sits in a broadly neutral zone, though toward the lower end of its recent range. Combined with an IV/HV ratio of 1.20, this suggests implied volatility is running modestly above realized volatility, so options are not especially cheap, but they also do not appear richly priced. The Call/Put volume ratio is 1.21.

Large Trades

A bullish synthetic long with a net credit of $1.28 million was the standout complex trade, built by selling 2,600 contracts of the February 19, 2027 $370.00 put and buying 1,800 contracts of the February 19, 2027 $490.00 call. With AVGO referenced at $416.05, the short put was out of the money and the long call was also out of the money, creating a classic synthetic long-style structure that expresses upside conviction while taking in premium upfront. The net credit indicates the trader was paid to establish the position, suggesting an aggressive directional bet on longer-term strength rather than a pure hedge, with the short put leg adding willingness to assume downside assignment risk in exchange for income and leveraged bullish exposure.

A PUT buy worth $1.29 million targeted the September 25, 2026 $345.00 strike, with 3,400 contracts purchased. At the reference stock price of $416.05, this put was out of the money, so the buyer was positioning for downside protection or a bearish move that would need meaningful weakness to become intrinsically valuable. As a single-leg purchase, the trade reflects straightforward bearish positioning, either as a hedge against a future drawdown or as a speculative bet that AVGO could retreat substantially before expiration.

Overall, large-trade sentiment in AVGO was decisively bullish, with total bullish flow of $14.20 million versus $1.29 million in bearish flow, leaving a net difference of $12.91 million to the bullish side. The directional conclusion is clearly positive because the dominant flow came from a long-dated synthetic long established for a net credit, which points to strong upside conviction and a willingness to monetize downside risk in order to secure bullish exposure. While the put purchase shows that some participants are still preparing for downside or seeking protection, the balance of size and structure strongly indicates that institutional large-trade activity is leaning bullish on AVGO.

Strategy Reference

For traders seeking a low assignment probability while mirroring the dominant bullish sentiment, selling an out-of-the-money put with a delta near 0.20 or lower, such as a monthly $350.00 strike, could allow for premium collection with a defined risk profile, though a bull put spread is a prudent alternative to cap margin requirements and downside exposure.