Broadcom Stock Sees $2.3 Million in Bearish Put Activity as Shares Approach 52-Week Highs

By TrendSpider Editor

Broadcom Inc. (AVGO) is drawing attention in the options market today, with $2,311,422.80 in total premium flowing into eight unusual put contracts as the stock trades at $428.51, up 1.58% on the session. Every single contract flagged today is a put, with strikes ranging from $415 to $537.50, sugges

Broadcom Stock Sees $2.3 Million in Bearish Put Activity as Shares Approach 52-Week Highs

Broadcom Inc. (AVGO) is drawing attention in the options market today, with $2,311,422.80 in total premium flowing into eight unusual put contracts as the stock trades at $428.51, up 1.58% on the session. Every single contract flagged today is a put, with strikes ranging from $415 to $537.50, suggesting some traders are positioning for a pullback or hedging existing long positions near current levels. With AVGO sitting just below its 52-week high of $442.36 and well above its 52-week low of $231.13, the bearish options flow arrives at a technically sensitive moment for the semiconductor giant.

Key Drivers of the AVGO Stock Move

The forward setup for AVGO is nuanced. The stock has staged a substantial recovery from its 52-week low of $231.13, more than doubling to its current price of $428.51, which naturally invites profit-taking hedges from institutional players sitting on large gains. The concentration of in-the-money puts at strikes well above the current price, particularly the $535 and $537.50 contracts expiring June 8 and June 10, points to traders locking in downside protection on a very short-term basis. The lone out-of-the-money block at $415 for June 18 expiration carries a different character and could reflect a more speculative view that the rally stalls before the next catalyst. Broadcom remains a consensus favorite in the AI infrastructure buildout narrative, and any macro or sector-level weakness heading into June could amplify the move these options traders appear to be anticipating.

AVGO Unusual Options Activity

All eight flagged contracts today are puts, with no call activity in the unusual flow. Below is a breakdown of each contract:

The June 18 $415 put block dwarfs the rest of the flow in terms of contract count at 600 contracts, while the cluster of smaller in-the-money trades at higher strikes all carry an open interest ratio of 1000%, meaning today's volume overwhelmed existing open interest by a factor of ten on each of those contracts. Total unusual contracts flagged: 8. Total premium: $2,311,422.80.

AVGO Seasonality

Late May and early June have historically been a transitional period for semiconductor stocks, as the sector digests spring earnings results and begins positioning ahead of summer conference season. With AVGO near its 52-week high heading into this window, options traders hedging through mid-June expirations are aligning with a period that has historically seen increased volatility in high-beta chip names.

AVGO Relative Performance

AVGO's 1.58% gain today places it in positive territory on the session, and its position at $428.51 represents a significant premium to its 52-week low of $231.13. The stock is trading within approximately 3.14% of its 52-week high of $442.36, indicating it is outperforming on a trailing basis relative to where the broader semiconductor sector has traded over the past year. The concentration of bearish options flow at a moment when the stock is near peak levels suggests that even bullish holders are paying for downside protection as the stock approaches resistance at its yearly highs.