Broadcom Sees Bullish Unusual Options Activity as Two Call Contracts Draw Over $1.3M in Premium
By TrendSpider Editor
Broadcom Inc. is drawing attention in the options market Tuesday, with two unusual call contracts generating a combined $1,318,046.60 in premium as AVGO trades at $386.41, up 2.18% on the session. Both contracts are out of the money and set to expire on August 21, 2026, suggesting traders are positi
Broadcom Sees Bullish Unusual Options Activity as Two Call Contracts Draw Over $1.3M in Premium
Broadcom Inc. is drawing attention in the options market Tuesday, with two unusual call contracts generating a combined $1,318,046.60 in premium as AVGO trades at $386.41, up 2.18% on the session. Both contracts are out of the money and set to expire on August 21, 2026, suggesting traders are positioning for a continued push higher over the next month. With AVGO currently sitting in the upper half of its 52-week range of $273 to $495, today's options flow adds a layer of conviction to what is already a strong trending tape.
Key Drivers of the AVGO Stock Move
- Main Catalyst: Two unusual call contracts hit the tape today, one at the $387.50 strike and one at the $435 strike, both expiring August 21, 2026. Together they account for $1,318,046.60 in total premium, with the $435 strike generating $750,000 alone on a size of 1,000 contracts.
- Bull Case: The $435 strike call carries an open interest percentage of 1,163%, meaning volume today dwarfed existing open interest by more than eleven times. The $387.50 strike showed a similar dynamic at 590% of open interest on 242 contracts. This kind of aggressive, conviction-driven positioning well above current prices implies institutional players are betting on a meaningful near-term rally.
- Bear Case: Both contracts are currently out of the money, and AVGO would need to clear $387.50 and then $435 to deliver on either position before expiration on August 21, 2026. That means a move of roughly 12.6% from current levels would be required for the $435 strike to reach profitability, which is a significant hurdle in a single month.
The forward setup for Broadcom is intriguing. The stock is already up 2.18% today and has room to run before testing the top of its 52-week range at $495. The outsized open interest ratios on both contracts suggest this is not routine retail activity, but rather targeted positioning that could reflect expectations around a near-term catalyst, whether a product announcement, macro development, or sector rotation into semiconductors. With both strikes set to expire on August 21, 2026, any meaningful news over the next four weeks could make or break these trades.
AVGO Unusual Options Activity
Two call contracts flagged as unusual hit the tape on Tuesday, both expiring August 21, 2026:
- Call, $387.50 strike, exp. August 21, 2026: Volume of 242 contracts, open interest at 590% of existing levels. Out of the money. Premium: $568,046.60.
- Call, $435 strike, exp. August 21, 2026: Volume of 1,000 contracts, open interest at 1,163% of existing levels. Out of the money. Premium: $750,000.
Total premium across both contracts: $1,318,046.60. Both contracts are pure calls, with no put activity flagged today, making the directional lean entirely bullish.
AVGO Seasonality
The late July through August window has historically been an active period for semiconductor stocks as earnings season drives sector volatility and repositioning. With both contracts expiring August 21, 2026, traders may be anticipating a catalyst in that earnings and conference-heavy stretch of the summer calendar.
AVGO Relative Performance
AVGO is outperforming on Tuesday with a gain of 2.18%, bringing its price to $386.41. That positions the stock well above its 52-week low of $273 and keeps it on a trajectory toward the upper end of its annual range at $495. The combination of positive price action and aggressive call buying suggests Broadcom is showing relative strength within the semiconductor space today.
More on AVGO
- Broadcom Crushes Q3 2026 Earnings With 96% Profit Surge as Revenue Tops $29.5 Billion
- Broadcom Crushes Q3 2026 Earnings Estimates, But Shares Slip 2% in After-Hours Trading
- Broadcom Sees Bullish Call Sweep Worth $1.07M as Stock Sits Near 52-Week Lows
- Broadcom Shares Slide 5.46% as Selling Pressure Drags Stock Toward Midrange of 52-Week Band
- Broadcom Sees Bearish Options Bets Emerge as AVGO Trades Near Midpoint of 52-Week Range
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