Broadcom closed at 351.19 USD, down 1.10 %.

The session’s most notable options activity was a 1,400-contract purchase of January 2027 $420 calls for $1.70 million, a long-dated bullish bet far above spot. Overall large-trade flow leaned bullish, with meaningful premium concentrated in upside exposure even as a smaller put buy appeared elsewhere in the tape.

>>>Start OPTIONS trading & earn up to SGD 200 in rewards!

Options Indicators

Broadcom currently has an implied volatility (IV) of 38.58%, and with an IV percentile of just 4.78%, current volatility sits near the low end of its recent range, indicating options are cheaply priced rather than expensive. The IV/HV ratio of 1.24 shows implied volatility is running modestly above historical volatility, suggesting the options market is pricing in somewhat more forward-looking movement, but overall the volatility backdrop still appears relatively subdued.

The Call/Put volume ratio is 1.69.

Large Trades

A call purchase worth $1.70 million was the standout large trade, with 1,400 contracts bought at the 420.0 strike expiring on 2027-01-15. With AVGO referenced at 351.19, this call was out of the money, making it a clearly bullish, higher-conviction directional bet on upside over a long-dated horizon. The buyer was paying premium for leverage to a substantial advance above the current stock price, which suggests expectations for continued appreciation rather than short-term hedging.

Overall, the large-trade flow leans bullish on AVGO. The dominant block was a sizable long-dated call purchase, and while there was also a smaller put buy elsewhere in the full tape, the most meaningful premium concentration was still directed toward upside exposure. Taken together, the block activity points to constructive sentiment, with traders appearing more willing to fund upside participation than to position for a sustained downside move.

Strategy Reference

With IV near historic lows, a seller seeking low assignment probability could look at the February 2025 $320 put, while a bullish vertical spread using the $380/$420 calls expiring January 2027 offers defined risk without the margin burden of a naked call.