Broadcom Sees Bearish Options Bets Emerge as AVGO Trades Near Midpoint of 52-Week Range

By TrendSpider Editor

Broadcom Inc. is drawing attention in the options market today, with two unusual put contracts totaling $2,267,325 in combined premium flagged as notable activity. AVGO shares are currently trading at $418.21, down 0.99% on the session, sitting comfortably between its 52-week low of $281.87 and its

Broadcom Sees Bearish Options Bets Emerge as AVGO Trades Near Midpoint of 52-Week Range

Broadcom Inc. is drawing attention in the options market today, with two unusual put contracts totaling $2,267,325 in combined premium flagged as notable activity. AVGO shares are currently trading at $418.21, down 0.99% on the session, sitting comfortably between its 52-week low of $281.87 and its 52-week high of $495. The put-heavy flow signals that at least some traders are positioning for potential downside in the months ahead.

Key Drivers of the AVGO Stock Move

• Main Catalyst: Two unusual put contracts were detected in AVGO options, with the dominant trade being a PUT at the $400 strike expiring February 19, 2027, carrying $2,190,000 in premium on a size of 500 contracts and an open interest percentage of 758%. A second, smaller PUT at the $560 strike with the same expiry added $77,325 in premium on just 5 contracts at an OI percentage of 1000%.
• Bull Case: The $400 strike put is currently out of the money relative to the $418.21 share price, meaning AVGO would need to fall meaningfully before those contracts move into profitable territory. The stock remains well above its 52-week low of $281.87, suggesting broader structural support has held.
• Bear Case: The $560 strike put is in the money, indicating at least one trader is already sitting on a position with intrinsic value and may be anticipating continued weakness. The combined $2,267,325 in total premium represents a notable directional bet, and the extreme open interest readings, 758% and 1000% respectively, suggest these are not routine trades.

The forward setup for AVGO carries real uncertainty. The stock is currently positioned in the middle of its 52-week range, trading at $418.21 against a high of $495, which leaves room for both recovery and further deterioration. The February 2027 expiration dates on both contracts give these positions roughly six months of runway, suggesting traders are not making a short-term tactical call but rather a longer-term directional thesis. Whether that thesis is rooted in macro concerns, sector rotation out of semiconductors, or Broadcom-specific fundamentals remains to be seen, but the options flow alone warrants monitoring as the stock continues to digest recent price action.

AVGO Unusual Options Activity

Two unusual put contracts were flagged in AVGO today, both targeting the February 19, 2027 expiration. The first is a PUT at the $400 strike with a volume of 500 contracts against an open interest reading of 758%, currently out of the money, with $2,190,000 in premium. The second is a PUT at the $560 strike with a volume of 5 contracts and an open interest reading of 1000%, currently in the money, carrying $77,325 in premium. Both contracts are skewed entirely to the put side, with zero call contracts reported in today's unusual flow.

AVGO Seasonality

Mid-August has historically been a mixed period for semiconductor stocks as investors begin to look ahead toward fall earnings cycles and back-to-school demand signals. The February 2027 expiration on both contracts spans what would typically be Broadcom's next major earnings window, suggesting the traders behind this flow may be hedging against or speculating on a specific catalyst in that timeframe.

AVGO Relative Performance

AVGO is down 0.99% today, a modest decline in absolute terms but one occurring while the broader semiconductor sector faces ongoing scrutiny around AI infrastructure spending timelines and export policy. At $418.21, the stock sits roughly 15.5% below its 52-week high of $495 and approximately 48% above its 52-week low of $281.87, placing it in the upper half of its annual range despite today's pullback.