Broadcom Inc. closed at $420.565, rising 0.55% from the prior session.

A massive $3.72 million bear put spread dominated AVGO's options flow, signaling a strong institutional conviction for a decline toward $320 by 2026. This bearish positioning overshadowed a notable $2.58 million bullish call purchase, leaving the net sentiment decisively negative as downside premium far outweighed upside bets.

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Options Indicators

AVGO’s implied volatility is 53.63%, and with an IV percentile of 67.33%, current option pricing sits in the upper end of the neutral range rather than at an outright extreme. In other words, implied volatility is somewhat firm but not yet in the clearly expensive zone, while the IV/HV ratio of 1.23 suggests options are carrying a modest premium relative to recent realized volatility. The Call/Put volume ratio is 1.49.

Large Trades

A bearish put spread with a net premium of $3.72 million was the largest featured strategy, built by buying 1,500 contracts of the October 16, 2026 $410.00 put while simultaneously selling 2,250 contracts of the October 16, 2026 $320.00 put. Both legs were out of the money versus the reference stock price of $420.57, and the structure reflects a defined-risk bearish position aimed at profiting from a meaningful decline in AVGO while reducing upfront cost through the short lower-strike puts. With $5.02 million paid for the long put leg and $1.30 million collected from the short put leg, this was a net debit spread, showing that the trader was willing to spend significant premium for downside exposure into late 2026 rather than simply hedging with a naked put purchase.

A CALL buy worth $2.58 million was the other highlighted large trade, consisting of 1,250 contracts of the September 18, 2026 $450.00 call purchased outright. The strike sits above the reference stock price of $420.57, so the option was out of the money at execution, indicating a bullish directional bet that AVGO can rally above current levels over the next year. As a single-leg long call, the trade expresses upside participation with limited premium risk, and its sizable dollar commitment suggests conviction in further appreciation, though the out-of-the-money strike also implies the buyer is targeting a meaningful advance rather than a modest move.

Overall, the large-trade flow in AVGO leaned bearish. The sentiment summary shows downside-oriented premium clearly outweighed bullish premium, and the dominant trade of the session was a substantial bear put spread that targeted lower prices over a long-dated horizon. Although there was a notable bullish call purchase, the broader character of the large trades suggests institutional participants were more focused on positioning for weakness or protecting against downside than on chasing upside, leaving the net options tone decisively negative.

Strategy Reference

For traders seeking a low assignment probability on the sell side, the $320.00 put strike from the large spread offers a deep out-of-the-money reference; alternatively, a bear call spread using short-term, out-of-the-money calls can define risk without the large margin requirement of a naked put spread.