Broadcom closed at USD 346.25, a decrease of 3.10%.

Large options trades in Broadcom showed a clear bullish lean despite the daily decline. The most notable transaction was a $2.03 million put sale at the 290.0 strike expiring in 2027, alongside a smaller but similar $466,000 put sale at the same 290.0 strike expiring in 2026. Both trades reflect systematic downside premium collection rather than bearish positioning.

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Options Indicators

Broadcom’s implied volatility is 38.53%, and with an IV percentile of just 5.98%, current option volatility sits on the low side relative to its own recent history, indicating that options are cheaply priced rather than expensive. The IV/HV ratio of 1.15 suggests implied volatility is modestly above realized volatility, but overall the options market is still reflecting relatively subdued premium levels. The Call/Put volume ratio is 1.25.

Large Trades

A put sale worth $2.03 million was the largest large trade in AVGO, with 1,500 contracts sold at the 290.0 strike expiring on 2027-03-19. With the stock reference price at 346.25, this put was out of the money, making it a moderately bullish to neutral-income position that suggests the trader is comfortable taking downside exposure only if AVGO falls materially toward the strike. Strategically, selling an out-of-the-money put at this level typically reflects confidence that shares will remain above 290.0 through expiration, while also signaling willingness to accumulate stock at an effective lower entry point if assigned.

Another notable trade was an out-of-the-money 290.0 put sale expiring on 2026-11-20, totaling $466,000 across 2,400 contracts. This was also a bullish-leaning premium-selling trade, with the seller expressing a view that AVGO is unlikely to break meaningfully below 290.0 by that expiration. The repeated use of the same strike across two maturities reinforces the idea of systematic downside premium collection rather than outright bearish positioning. Overall, the large-trade flow in AVGO is clearly bullish, with sentiment driven by consistent out-of-the-money put selling that points to confidence in price support above 290.0 and a market posture favoring premium income while maintaining a constructive view on the stock.

Strategy Reference

For traders seeking a lower assignment probability than the 290.0 strike, selling the 250.0 put in a 30-45 day expiration may offer a wider downside buffer against the current price of 346.25, though premium will be smaller; alternatively, a bull put spread such as selling the 300.0 put and buying the 270.0 put can cap margin while still aligning with the bullish premium-collection theme.