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
Oct 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.

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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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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