Broadcom Sees $3.5 Million in Bearish Put Activity as Stock Hovers Near 52-Week Lows

By TrendSpider Editor

Broadcom Inc. (AVGO) is drawing attention in the options market today after three unusual put contracts totaling $3,557,300 in premium hit the tape, signaling that at least some traders are positioning for downside in the semiconductor and infrastructure software giant. AVGO shares are trading at $3

Broadcom Sees $3.5 Million in Bearish Put Activity as Stock Hovers Near 52-Week Lows

Broadcom Inc. (AVGO) is drawing attention in the options market today after three unusual put contracts totaling $3,557,300 in premium hit the tape, signaling that at least some traders are positioning for downside in the semiconductor and infrastructure software giant. AVGO shares are trading at $361.90, up just 0.30% on the session, but the stock remains well off its 52-week high of $495.00 and sits closer to the lower end of its 52-week range, with a floor at $289.96. The clustering of out-of-the-money put activity across two different expirations suggests a deliberate, multi-leg bearish thesis rather than routine hedging.

Key Drivers of the AVGO Stock Move

• Main Catalyst: Three unusual put contracts were flagged today, two targeting the $350 strike expiring January 15, 2027, and one targeting the $300 strike expiring October 16, 2026. Combined, they represent $3,557,300 in total premium, with the largest single contract carrying $1,820,000 in premium alone on the January $350 puts.
• Bull Case: AVGO is only 3.3% above the $350 put strikes, meaning the options could easily expire worthless if the stock holds current levels or recovers toward its 52-week high of $495.00. The relatively modest 0.30% gain today suggests the broader market is not reading this flow as immediately alarming.
• Bear Case: All three contracts are out-of-the-money puts with low open interest ratios of 13% and 7%, which can indicate new positioning rather than hedging of existing long exposure. A move back toward the 52-week low of $289.96 would put both the $350 and $300 strikes deeply in the money, representing a significant loss of value from current prices.

The forward setup for AVGO is worth watching carefully heading into the fourth quarter of 2026. The $300 strike put expiring October 16 gives traders just over five weeks to be right, implying a need for a sharp and swift move lower. The January 2027 puts, by contrast, afford a longer runway for the thesis to play out, suggesting the trader behind those contracts may be anticipating a more gradual deterioration. Broadcom has been navigating a complex environment in the semiconductor space, balancing AI infrastructure tailwinds against broader macro uncertainty. With the stock trading roughly 27% below its 52-week high, the chart is already reflecting some degree of investor caution, and this options flow adds another layer of bearish sentiment to monitor.

AVGO Unusual Options Activity

Three put contracts were flagged as unusual today, all on the sell side of the directional spectrum:

• Put, $300 strike, expiring October 16, 2026: Size of 1,000 contracts, open interest ratio of 13%, out-of-the-money, premium of $93,000.
• Put, $350 strike, expiring January 15, 2027: Size of 630 contracts, open interest ratio of 7%, out-of-the-money, premium of $1,644,300.
• Put, $350 strike, expiring January 15, 2027: Size of 700 contracts, open interest ratio of 7%, out-of-the-money, premium of $1,820,000.

The two January $350 put contracts together represent $3,464,300 of the $3,557,300 total unusual premium, concentrating the bearish conviction at the $350 level with a multi-month time horizon. Zero call contracts were flagged in today's unusual activity scan, making this a purely bearish options flow day for AVGO.

AVGO Seasonality

September and October have historically been volatile months for semiconductor stocks, as investors reassess demand cycles heading into year-end earnings seasons. The October 16 put expiration falls squarely within this seasonally sensitive window, which may be adding urgency to the shorter-dated bearish positioning.

AVGO Relative Performance

AVGO's 0.30% gain today is a modest outperformer relative to the broader session, but the stock's position at $361.90, roughly 27% below its 52-week high of $495.00, reflects underperformance over the longer term. The proximity to the $350 put strikes, just 3.3% below current trading levels, indicates that today's options flow is targeting a near-term breakdown rather than a distant tail risk scenario.