Broadcom Inc. closed at $392.23, a 0.76% rise.

The options market lit up with a clearly bullish tone, highlighted by a $5.04 million put sale and a $1.16 million call buy. These large trades, combining premium collection on downside protection with leveraged upside bets, signaled strong institutional conviction in AVGO’s continued strength.

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Options Indicators

AVGO’s implied volatility is 55.16%, and with an IV percentile of 76.49%, current volatility is sitting in an elevated zone, indicating that options are priced expensively relative to the stock’s recent history. The IV/HV ratio of 1.31 further suggests implied volatility is running above realized volatility, meaning the options market is embedding a richer premium for future movement than what the stock has recently delivered. The Call/Put volume ratio is 1.67.

Large Trades

A PUT sale worth $5.04 million was the largest displayed large trade, with 1,125 contracts of the December 15, 2028 $270.00 put sold. With AVGO referenced at $392.23, this strike was out of the money at the time of the trade, making it a moderately bullish position that expresses willingness to buy the stock at a much lower effective level while collecting premium upfront. Strategically, short out-of-the-money puts are commonly used for income generation or for positioning into a long-equity entry on weakness, so this trade suggests confidence that AVGO is unlikely to fall below $270.00 by expiration.

A CALL buy worth $1.16 million was the other displayed large trade, involving 1,928 contracts of the August 21, 2026 $420.00 call. Since the strike was above the reference stock price of $392.23, the call was out of the money, indicating a bullish directional bet on upside over a relatively long-dated horizon. Buying out-of-the-money calls typically reflects an attempt to gain leveraged exposure to a rally while limiting risk to the premium paid, so this order points to expectations for meaningful appreciation in AVGO before expiration.

Overall, the large-trade flow was clearly bullish, with all of the notable premium concentrated in bullish structures and no meaningful bearish large-trade activity appearing in the summary. The flow combined premium-collecting put sales below the market with upside call buying above the market, a pairing that typically reflects constructive sentiment: traders appear comfortable underwriting downside at lower levels while also seeking participation in further upside. Taken together, the large trades suggest institutional positioning for continued strength in AVGO rather than caution or downside protection.

Strategy Reference

For traders seeking to mimic the institutional sentiment with a low probability of assignment, selling the December 2028 $250.00 put would provide an even wider margin of safety below the market while still capturing elevated premium from the current high IV environment.