Broadcom closed at USD 355.10, rising 1.58% after opening at USD 357.00 and trading between USD 354.00 and USD 361.86.
Large options trades in Broadcom featured a $6.64 million net-credit put spread/calendar hybrid that collected premium with defined downside structure, and a $1.90 million out-of-the-money December 2026 420 call purchase signaling longer-term upside conviction. The overall block flow leaned slightly bearish, with downside interest marginally outweighing bullish positioning, while the dominant premium-collecting put structure pointed to a cautious rather than aggressively bullish tone.
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Options Indicators
Broadcom’s implied volatility is 38.57%, and with an IV percentile of just 4.38%, current option volatility sits near the low end of its historical range, indicating options are cheaply priced rather than expensive. At the same time, the IV/HV ratio of 1.27 shows implied volatility is still running above realized volatility, so the market is pricing in somewhat more movement ahead than what the stock has recently delivered, even though overall option pricing remains on the low side historically. The Call/Put volume ratio is 1.73.
Large Trades
A put spread structure collecting $6.64 million in net credit was the largest featured trade, built as a four-leg calendar-style put combination across October 16, 2026 and January 15, 2027. Specifically, the trader sold the 380.0 puts in both expirations, bought the 340.0 put in January 2027, and sold the 340.0 put in October 2026. With AVGO referenced at $355.10, the 380.0 short puts were in the money, while the 340.0 strike legs were out of the money. This is best viewed as a put spread/calendar hybrid established for a net credit, pointing to premium collection with defined downside structure rather than an outright crash hedge; the trader appears comfortable taking on downside exposure around the higher strike while using the longer-dated 340.0 put as partial protection and harvesting time-value differences across expirations.
An out-of-the-money call buy worth $1.90 million was the other standout trade, with 1,780 contracts of the 420.0 call expiring December 18, 2026 purchased outright. Since the strike sits well above the $355.10 reference stock price, this was a clean upside directional bet seeking a meaningful rally over a longer time horizon. The willingness to pay premium for a distant out-of-the-money call suggests the buyer was targeting leveraged upside participation rather than income generation or near-term hedging. Overall, the large-trade flow leans slightly bearish, as the broader block activity shows downside interest marginally outweighing bullish positioning, and the dominant premium-collecting put structure indicates a market tone that is cautious rather than aggressively bullish even though a notable long-dated upside call buyer remains in the mix.
Strategy Reference
For a low assignment probability, a seller could consider the 300.00 strike put expiring in 30–45 days, which sits well below current support and typically carries a delta under 0.15; alternatively, a bull put spread using the 330.00/300.00 strikes offers defined risk and reduced margin compared with a naked short put while still benefiting from elevated call/put volume ratios and cheap IV.
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