Broadcom Share Price Down 0.6%, Option Traders Bearish Amid Increased Demand for Downside Protection

Broadcom shares are down 0.6% at $295.92, with option traders showing moderate bearishness. Options volume is roughly in line with average, with calls leading puts for a put/call ratio of 0.82. Implied volatility is higher by 1.8 points near 46.66, indicating an expected daily move of $8.70. Put-call skew steepened, suggesting increased demand for downside protection.

Broadcom shares (AVGO) have experienced a slight decline, down by 0.6% to $295.92 as of July 2, 2025. This movement comes amidst a moderate bearish sentiment among option traders, as evidenced by the put-call ratio of 0.82. The volume of options trading remains roughly in line with average levels, with calls outpacing puts.

The implied volatility has increased by 1.8 points, reaching 46.66, which suggests an expected daily move of approximately $8.70. This rise in volatility indicates heightened uncertainty and potential market movements. Additionally, the put-call skew has steepened, suggesting an increased demand for downside protection.

In the context of recent options activity, Broadcom has seen substantial interest from investors. A recent analysis by Benzinga highlighted 23 extraordinary options activities for Broadcom, with 56% of the trades indicating a bullish sentiment [1]. Among these notable options, 6 are puts and 17 are calls, with a total trade price of $1,822,312 [1].

The market sentiment towards Broadcom is mixed, with 56% of the options trades leaning bullish and 26% leaning bearish [1]. The significant activity in Broadcom's options market suggests that investors are closely watching the company's performance.

Broadcom's current market standing indicates that the stock is approaching overbought levels, as indicated by the Relative Strength Index (RSI) values. The next earnings report is scheduled for 30 days from now, which could provide further clarity on the company's performance.

Professional analysts have given mixed ratings and price targets for Broadcom. Keybanc and Mizuho maintain an Overweight rating with target prices of $330 and $320, respectively, while Morgan Stanley and Citigroup have a Buy rating with target prices of $338 and $315, respectively. Goldman Sachs, however, has lowered its rating to Buy with a new price target of $315 [1].

In summary, while Broadcom shares have experienced a slight decline, the options market reflects a moderate bearish sentiment. The increased implied volatility and steepened put-call skew suggest heightened uncertainty and potential market movements. The mixed analyst ratings and significant options activity indicate that investors are closely watching Broadcom's performance.

References:
[1] https://www.benzinga.com/insights/options/25/08/46858434/broadcom-options-trading-a-deep-dive-into-market-sentiment