Broadcom Sees $1.6 Million Bullish Call Bet as AVGO Trades Near 52-Week Lows

By TrendSpider Editor

Looking ahead, the June 2027 expiration gives this options position roughly eight and a half months for the thesis to play out, which spans multiple potential earnings reports and macro catalysts. Broadcom remains a central player in the artificial intelligence infrastructure buildout, with its cust

Broadcom Sees $1.6 Million Bullish Call Bet as AVGO Trades Near 52-Week Lows

Key Drivers of the AVGO Stock Move

• Main Catalyst: A single call contract at the $480 strike expiring June 17, 2027 traded with a size of 748 contracts and a total premium of $1,641,934.80. The contract is currently out of the money, with open interest representing 25% of existing OI at that strike, suggesting this is meaningful new positioning rather than a routine hedge.
• Bull Case: The $480 strike target implies a move of roughly one-third above the current price of $359.50 before expiration next June, and the trader paid nearly $1.65 million in premium to own that conviction. With AVGO already up 2.84% today and off a 52-week low of $289.96, momentum may be building as the stock attempts to recover lost ground.
• Bear Case: The $480 strike remains significantly out of the money relative to AVGO's current price of $359.50, meaning the stock would need a substantial rally just to approach profitability on this trade. Additionally, AVGO is still trading more than $135 below its 52-week high of $495.00, reflecting a prolonged period of underperformance that has not yet been resolved.

Looking ahead, the June 2027 expiration gives this options position roughly eight and a half months for the thesis to play out, which spans multiple potential earnings reports and macro catalysts. Broadcom remains a central player in the artificial intelligence infrastructure buildout, with its custom AI chip designs and networking silicon in high demand across hyperscaler customers. The longer-dated expiry suggests the trader may be positioning around a multi-quarter recovery narrative rather than a near-term event. If AVGO can build on today's 2.84% gain and continue reclaiming ground between the current price and its 52-week high, this call position could move meaningfully closer to the money over the coming months.

AVGO Unusual Options Activity

• Type: Call | Strike: $480 | Expiry: June 17, 2027 | Volume: 748 contracts | Open Interest: 25% of existing OI at strike

This is the only unusual contract flagged today, with zero puts recorded in today's flow. The absence of any put activity alongside a near $1.65 million call premium reinforces a one-sided bullish directional lean from the options market on this session.

AVGO Seasonality

Late September historically marks the tail end of a seasonally softer stretch for semiconductor names, with Q4 often bringing renewed institutional positioning ahead of year-end. A bullish options bet placed in the final days of September, targeting a strike well above current levels with a mid-2027 expiry, aligns with the pattern of longer-duration accumulation that tends to emerge as traders look past near-term volatility.

AVGO Relative Performance

AVGO's 2.84% gain on the session puts it in favorable standing relative to broader semiconductor peers on a day-over-day basis. However, with shares at $359.50 against a 52-week high of $495.00, the stock has significant ground to recover on a longer timeframe. The 52-week range of $289.96 to $495.00 shows that AVGO has experienced considerable volatility over the past year, and today's move, while constructive, represents only a partial recovery from what has been a meaningful drawdown off peak levels.