Broadcom closed at $361.54, rising 0.39%.
Large options flow was decisively bullish: a $2.19 million synthetic call and a $780,000.00 out-of-the-money put sale dominated activity. The synthetic call, involving a long call and short put, signals leveraged upside expectations. Simultaneously, selling the January 15, 2027 $290.00 put reflects confidence in limited downside. Together, these trades show institutions positioning for Broadcom to stay firm or grind higher with muted near-term fear.
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Options Indicators
Broadcom’s implied volatility is 32.97%, and with an IV percentile of just 0.40%, current option volatility sits at the very low end of its recent range, indicating options are cheaply priced rather than expensive. The IV/HV ratio of 0.87 also suggests implied volatility is running below historical volatility, reinforcing the view that the market is not attaching a rich premium to Broadcom’s options at the moment.
The Call/Put volume ratio is 1.49.
Large Trades
A synthetic call worth $2.19 million was the largest featured structure, created by buying the November 20, 2026 $390.00 call and selling the November 20, 2026 $320.00 put. The call leg totaled $1.29 million and was out of the money versus the $361.54 reference price, while the short put leg totaled $902 thousand and was also out of the money. As a package, this was flagged bullish with a net debit of $385 thousand, signaling a leveraged upside stance that also expresses willingness to take on downside assignment risk through the short put in exchange for stock-like exposure.
A PUT sale worth $780 thousand was the other highlighted large trade, involving the January 15, 2027 $290.00 put. With the strike below the current stock reference, the option was out of the money at execution, making this a bullish income-style trade that benefits if AVGO stays above $290.00 into expiration. The seller appears to be expressing confidence in downside support while collecting premium, effectively positioning for stability to moderate upside rather than an immediate sharp rally. Overall, the large-trade flow points clearly bullish, with sentiment dominated by upside-leaning structures and premium-selling activity at lower strikes, suggesting institutions are positioning for AVGO to remain firm and potentially grind higher while showing limited concern about near-term downside risk.
Strategy Reference
A trader seeking low assignment probability could sell a put at the $290.00 level or slightly lower, mirroring the highlighted trade, while those preferring defined risk might consider a bullish put credit spread near the $320.00 strike.