Broadcom closed at USD 373.90, rising 3.73% from the previous session. The session's notable options activity was dominated by a single, sizable bearish put purchase, signaling institutional hedging or a downside bet amidst the stock's recent strength.
Options Indicators
AVGO’s implied volatility stands at 52.68%, while its IV percentile is 66.53%, which places current volatility in a broadly neutral zone rather than an outright elevated one. At the same time, the IV/HV ratio of 0.94 suggests implied volatility is slightly below realized volatility, indicating options are not notably overpriced at current levels and are closer to fair value, with a mild lean toward reasonable pricing rather than excess premium.
The Call/Put volume ratio is 2.31.
Large Trades
A PUT buy worth $0.10 million was the standout large trade, consisting of 1,700 contracts of the AVGO 370.0 put expiring on 2026-07-06, with a total premium of $0.10 million. This was a single-leg bearish trade placed slightly out of the money versus the reference stock price of $373.90, indicating the buyer was positioning for downside exposure below the 370.0 strike over the coming year. As a purchased put, the trade reflects a clear bearish directional view or a downside hedge, with the buyer paying premium to secure protection or speculate on a decline in AVGO.
Overall, large-trade sentiment was bearish. Total bullish flow was $0.00 million, while total bearish flow reached $0.10 million, leaving a net difference of $0.10 million to the bearish side. With no offsetting bullish large trades and the only notable block being a long out-of-the-money put purchase, the flow suggests cautious to negative institutional sentiment, pointing to expectations for downside risk or a desire to hedge against weakness in AVGO.
Strategy Reference
A seller of a far out-of-the-money put, such as the $300 strike, could collect premium with a low probability of assignment, while a trader looking to express a bearish view without posting significant margin might consider a vertical put spread, such as buying the $370 put and selling the $350 put.