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Options Indicators
AVGO’s implied volatility is 39.97%, and with an IV percentile of just 2.39%, current option volatility sits near the low end of its recent range, indicating options are cheaply priced rather than rich. The IV/HV ratio of 1.05 suggests implied volatility is only slightly above realized volatility, so current premiums appear relatively reasonable without a major volatility excess built in.
The Call/Put volume ratio is 1.88.
Large Trades
A put sale worth $1.55 million was the largest displayed trade, with 1,500 contracts of the March 19, 2027 $280.00 put sold. With AVGO referenced at $364.38, this strike sits out of the money, making the trade a moderately bullish premium-selling position. The seller is effectively expressing confidence that the stock can stay above $280.00 into expiration, aiming to collect option premium while also signaling willingness to take assignment at a substantially lower effective entry level if the shares decline.
A put purchase worth $943 thousand was the other highlighted block, consisting of 1,250 contracts of the December 18, 2026 $300.00 put bought. This strike is also out of the money versus the current stock price, so the trade reflects a bearish or protective stance that targets downside risk over a longer horizon. Buying this put gives the trader convex downside exposure if AVGO weakens materially, suggesting either a speculative bet on a pullback or a hedge against an existing long equity position. Overall, the large-trade flow leans bullish: the biggest premium was collected through out-of-the-money put selling, and the broader block activity shows bullish flow outweighing bearish flow, pointing to a market stance that is constructive on AVGO while still acknowledging some demand for downside protection.
Strategy Reference
For traders who prefer defined risk over selling naked puts, a short put spread using the March 2027 $260/$280 strikes could capture similar premium with a lower margin requirement, while the $260.00 put sale still offers a very low assignment probability relative to current price levels.