Broadcom closed at $355.59, down 0.32% from the previous session.

Options flow featured a $3.03 million call purchase targeting the September 2026 $387.50 strike, alongside a synthetic put that collected a net credit of $62 thousand via short $375.00 calls and long $335.00 puts. The call buyer is paying for leveraged upside, while the synthetic put adds a bearish hedge, leaving the day’s large-trade tone bullish on balance but with a visible long-dated downside protection component.

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Options Indicators

AVGO’s implied volatility is 53.47%, and its IV percentile stands at 64.94%, which places current volatility conditions in a broadly neutral range rather than at an extreme. With the IV/HV ratio at 1.20, implied volatility is running modestly above historical volatility, suggesting options are carrying a moderate premium to recent realized movement, but not to a level that would clearly qualify as expensive. Overall, AVGO’s options appear fairly to slightly richly priced, reflecting balanced but still somewhat elevated forward volatility expectations.

The Call/Put volume ratio is 1.51.

Large Trades

A synthetic put position with a net credit of $62 thousand stood out as one of the day’s key large trades, pairing a sale of the September 4, 2026 $375.00 call with a purchase of the September 4, 2026 $335.00 put, both for 2,500 contracts. With AVGO referenced at $355.59, the short call was out of the money and the long put was also out of the money, creating a bearish synthetic structure that benefits if the stock weakens materially while bringing in a small upfront premium. The modest net credit suggests the trader was expressing downside exposure in a relatively capital-efficient way rather than pursuing aggressive premium income, and the positioning points to a bearish directional bet over a longer-dated horizon.

A call purchase worth $3.03 million was the other featured large trade, with 3,600 contracts bought in the September 18, 2026 $387.50 call. Since the strike sits above the $355.59 reference price, the option was out of the money at execution, making this a clearly bullish upside expression that needs further appreciation in AVGO to gain intrinsic value. The buyer was paying premium for leveraged participation in a rally, signaling expectations for continued strength rather than downside protection or income generation. Overall, the large-trade flow leans bullish on balance: although the synthetic put introduced a notable bearish view, the bigger picture is dominated by bullish premium deployment, including the sizable outright call buying and supportive broader block activity, which suggests institutional sentiment remains constructive toward AVGO’s forward price direction.

Strategy Reference

For a defined-risk bearish view without posting large margin, a put debit spread such as buying the September 2026 $335.00 put and selling the $300.00 put may offer a lower capital requirement than the synthetic short position; alternatively, a covered call seller can consider the $387.50 strike for a relatively low assignment probability given its distance from spot and elevated implied volatility.