Broadcom closed at USD 339.51, edging up 0.07%.

Large options activity in AVGO showed a decisively defensive posture. A $16.46 million double-long put package and a $2.50 million bearish call spread dominated the tape. The put package involved buying two deep in-the-money strikes expiring in 2026, while the call spread sold a 380 call and bought a 470 call expiring in 2027, collecting net credit and capping upside. Together, the flow signals institutional preparation for material downside and limited upside.

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Options Indicators

AVGO’s implied volatility is 38.55%, and with an IV percentile of just 2.39%, current option pricing sits at the low end of its recent range, indicating volatility is relatively subdued and options appear cheaply priced. The IV/HV ratio of 1.11 suggests implied volatility is only modestly above realized volatility, so the market is not assigning a significant volatility premium at the moment. The Call/Put volume ratio is 1.83.

Large Trades

A directional put-buying package worth $16.46 million was the standout trade, consisting of long 420.0 puts and long 410.0 puts expiring 2026-09-18. Both legs were bought, making this a same-direction double-long put structure rather than a spread, and with the stock reference at 339.51 both strikes were already in the money at execution. That positioning points to an aggressive bearish view and a willingness to pay substantial premium for downside exposure, likely reflecting expectations for a large negative move and potentially rising volatility over a longer-dated horizon.

A bearish call spread collecting $2.50 million in net credit was the other highlighted block, built by selling the 380.0 call and buying the 470.0 call for 2027-03-19 expiration. With both calls out of the money versus the 339.51 stock reference, the structure caps upside while monetizing the view that AVGO is unlikely to rally beyond the short strike in a sustained way. Strategically, this is classic premium collection with a bearish-to-neutral directional bias, using the long 470.0 call as risk protection. Overall, the large-trade flow leans clearly bearish: the biggest premium outlay was concentrated in deep downside put exposure, while the other major structure also expressed skepticism toward upside, suggesting institutional traders are positioning for weakness or at least materially limited upside in AVGO.

Strategy Reference

For a low assignment probability on the call side, a seller could look at the 470 strike or higher; however, given the bearish institutional flow, a defined-risk bear put spread such as buying the 420 put and selling the 410 put may offer a more capital-efficient way to express downside if a trader prefers not to post excessive margin.