Broadcom options flow signals rebound attempt, but price trend still leans lower

Broadcom Inc. saw options trading activity that hinted at a potential rebound, but the overall price trend continued to decline. The stock was trading at $352.64 as of September 3, 2026, marking a 3.98% decrease. Options volume reached 634,548 contracts by 12:20 PM EDT, with calls outnumbering puts at a ratio of 1.75. The focus was on September $350–$370 calls, with significant activity in the Sep.

11 $350 call compared to its open interest. Traders seemed to be positioning for a quick rebound toward $360–$370 or hedging against short exposure. Meanwhile, the bearish Nov. 20 $300 put traded 7,103 contracts against 6,270 open interest, indicating ongoing downside protection. Three-month volatility decreased to 38.14%, suggesting less immediate panic following the earnings shock.

The 90/110 skew also improved to -1.08 percentage points, making downside protection relatively cheaper. The tape pointed to a possible relief bounce while AVGO held the $347–$342 support zone. The stock had previously reached an intraday low of $342.33 before rebounding to $352.64. This rebound suggested that buyers were defending the first major downside pocket.

Resistance lay around $354–$357; a sustained move above this zone would support a push toward $360–$362, aligning with the active call strikes. Conversely, a break below $347 would undermine the rebound scenario. The next downside levels were approximately $342, then $340. The base case was that AVGO would attempt a choppy rebound toward $357–$362, but remained susceptible to renewed selling.

Bullish scenarios suggested that call concentration and falling volatility could produce a fast oversold bounce toward $370. A bearish case indicated that a failure near $354–$357 would send the stock back toward $342–$340. The most definitive signal was not the call/put ratio, but whether the price reclaimed $357 or failed to hold $347. The options flow suggested a rebound, but the price trend still leaned lower.