Broadcom Inc. closed at $347.30, registering a 2.29% increase.

Despite the positive daily move, large options activity pointed firmly in the other direction. Broadcom saw $11.31 million in deep in-the-money put buying and an $11.25 million double-long put combination, both concentrated in 2026-09-18 maturities. The bulk of premium was deployed into bearish structures rather than low-cost tail hedges, reflecting institutional positioning for continued downside pressure and potentially elevated volatility into next year.

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Options Indicators

AVGO’s implied volatility is 37.57%, and with an IV percentile of just 0.80%, current option pricing sits at the very low end of its recent range, indicating volatility is on the low side and options are cheaply priced. At the same time, the IV/HV ratio of 1.21 shows implied volatility is running modestly above historical volatility, suggesting the market is still embedding some premium over realized movement, but overall pricing remains relatively inexpensive in percentile terms.

The Call/Put volume ratio is 1.74.

Large Trades

A put buy worth $11.31 million was one of the clearest bearish trades of the session, with 1,576 contracts purchased at the 420.0 strike expiring on 2026-09-18. With AVGO referenced at $347.30, this put was already in the money, which makes the trade a high-conviction downside position with substantial intrinsic value. Rather than a low-cost tail hedge, this kind of in-the-money put purchase typically reflects a more direct bearish view or a strong protective stance against further weakness into that maturity.

A directional double-long put combination with a net debit of $11.25 million paired long 400.0 puts and long 390.0 puts, both expiring on 2026-09-18, with 1,197 contracts bought on each leg. Because the structure includes both a Buy Put and another Buy Put, it is best understood as a same-direction long put combination rather than a spread, expressing an aggressive downside view and a bet on a large move lower. Both strikes were in the money versus the $347.30 stock reference, reinforcing that the buyer was willing to pay meaningful premium for deep bearish exposure rather than positioning for only a mild decline.

Overall, the large-order flow was decisively bearish. The standout activity was concentrated in sizable put buying, including outright in-the-money downside exposure and a sizable double-long put structure aimed at capturing further weakness and potentially elevated volatility. Even though there were a few smaller opposing trades elsewhere in the tape, the bulk-order profile shows institutional positioning leaning clearly toward downside risk, suggesting market participants were preparing for continued pressure in AVGO rather than a near-term rebound.

Strategy Reference

For traders seeking low assignment probability, a short put at the 260.00 strike expiring in the next monthly cycle could serve as a defined-risk income setup, though premium will be modest given the depressed IV percentile and the sizable distance from spot.