Option Focus | Broadcom’s $262,000 Put Sale at $280 Strike Signals Premium-Collecting Bullish Stance, Though Low IV Percentile Suggests Options Remain Cheap

Option Witch
10/22

Broadcom closed at $337.80, up 1.03% from the prior close.

A notable $262,000 put sale dominated the large-trade tape, with 2,000 contracts on the out-of-the-money $280.00 strike expiring November 20, 2026. The flow was entirely concentrated in put selling, pointing to a constructive, premium-collecting bias. Traders appear willing to bet on downside support rather than chase a sharp drop, and the absence of offsetting bearish bulk orders reinforces a medium-term bullish read on Broadcom’s option activity.

>>>Start OPTIONS trading & earn up to SGD 200 in rewards!

Options Indicators

Broadcom’s implied volatility is 42.92%, and with an IV percentile of 18.33%, current option volatility sits on the low side of its recent range, indicating that options are relatively cheaply priced rather than expensive. The IV/HV ratio of 1.20 shows implied volatility is running modestly above realized volatility, suggesting the market is assigning a somewhat higher premium to upcoming movement, but overall pricing still appears fairly restrained given the low percentile backdrop. The Call/Put volume ratio is 1.40.

Large Trades

A PUT sale worth $262,000 targeted the November 20, 2026 $280.00 strike, with 2,000 contracts traded while the option was out of the money versus the $337.80 reference stock price. By selling this out-of-the-money put, the trader expressed a moderately bullish stance, effectively betting that AVGO will stay above $280.00 through expiration or at least remain firm enough for the put premium to decay. The strategic meaning is consistent with premium collection and a willingness to accumulate shares at a lower effective entry level if assigned.

Overall, the large-trade flow points to a bullish bias in AVGO. The activity was concentrated entirely in out-of-the-money put selling, which typically reflects confidence in downside support and a preference to monetize elevated premium rather than position for a sharp drop. With no meaningful bearish large-trade activity offsetting it, the bulk-order sentiment suggests traders are leaning constructive on AVGO and expecting the stock to remain resilient over the medium term.

Strategy Reference

For a lower assignment probability on a cash-secured put, sellers could target a further out-of-the-money strike such as the $260.00 or $250.00 level, while traders seeking defined risk without posting large margin may prefer a bull put spread by selling the $280.00 put and buying a lower strike like $240.00.

免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。

熱議股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10