Broadcom Inc.’s shares closed at USD 386.50, up 2.21%.

This recent price strength was accompanied by a significant options transaction, with a single large trade betting $2.24 million on a long-dated, out-of-the-money call, indicating strong institutional conviction in the stock's future performance.

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

Options Indicators

AVGO’s implied volatility is 53.31%, and with an IV percentile of 67.73%, current volatility pricing sits in the upper end of the neutral range, approaching elevated territory but not yet firmly in it. Combined with an IV/HV ratio of 1.24, this suggests the options market is pricing AVGO at a modest premium to its recent realized volatility, so contracts are not cheap, though they are not clearly in an extreme overpricing zone either.

The Call/Put volume ratio is 1.75.

Large Trades

A CALL buy worth $2.24 million was the standout large trade, with 3,000 contracts purchased at the 435.0 strike expiring on 2026-08-21. With AVGO referenced at $386.50, this call was out of the money, making it a clearly bullish directional position that requires upside follow-through over a longer-dated horizon. The use of an out-of-the-money long call suggests the buyer was positioning for a substantial advance while keeping risk limited to the premium paid, indicating conviction in continued upside rather than a defensive hedge.

Overall sentiment was bullish, with total bullish large-trade flow at $2.24 million versus bearish flow at $0.00 million, for a net bullish difference of $2.24 million. The directional read is clearly positive, as the entire large-trade sample was concentrated in premium paid for upside call exposure, and the absence of any meaningful bearish activity reinforces the view that large traders were positioning for further gains in AVGO rather than protection or downside speculation.

Strategy Reference

For investors seeking income with lower capital commitment, selling a cash-secured put at a lower strike, such as $350.00, provides a defined-risk entry or premium-collection strategy, while a bull call spread using the $390 and $430 strikes for January 2025 expiration can define risk and reduce the cost of establishing a bullish position.