Broadcom Inc. closed at $371.54, up 4.49%.

Institutional options flow was decidedly bullish, highlighted by a $6.43 million call buy on the 370.0 strike expiring September 4, 2026. The trade involved 4,964 contracts and was slightly in the money at execution, indicating high-conviction directional positioning rather than a speculative out-of-the-money lottery ticket. Block activity was dominated by premium paid for upside exposure, with no meaningful bearish large trade to offset the stance.

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Options Indicators

AVGO’s implied volatility stands at 52.32%, and with an IV percentile of 57.37%, current option volatility sits in a neutral historical range rather than at an extreme. At the same time, the IV/HV ratio of 1.29 shows implied volatility is running above realized volatility, indicating the market is pricing in somewhat richer forward volatility expectations, but not at a level that suggests options are notably cheap or excessively expensive.

The Call/Put volume ratio is 2.13.

Large Trades

A call buy worth $6.43 million stood out as the day’s key large trade, with 4,964 contracts purchased on the 370.0 strike expiring September 4, 2026. With AVGO referenced at 371.54, this call was slightly in the money at execution, which makes the trade a relatively high-conviction bullish expression rather than a cheap out-of-the-money lottery-style bet. Strategically, this positioning suggests the buyer was seeking leveraged upside exposure while using a long-dated contract to retain time for a continued advance in the shares.

Overall, the large-trade flow points clearly bullish. The block activity was entirely dominated by premium paid for upside call exposure, with no meaningful opposing bearish large trade to offset that stance. The fact that the buyer chose an in-the-money, longer-dated call reinforces the impression of deliberate directional optimism, indicating expectations for AVGO to maintain or extend strength rather than merely staging a short-term speculative pop.

Strategy Reference

For a lower assignment probability on the sell side, a trader could consider selling the September 2026 300.0 put, which sits roughly 19% below spot and aligns with the bullish large-trade flow while collecting premium from the elevated IV/HV ratio.