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AVGO Traders Spend $1.4M on 280-310 Call Spread—Will Bullish Stock Momentum Overcome Bearish Option Skew?
Large Volume Call Spread Points to Aggressive Bullish Bet
On June 2, 2025, Broadcom (AVGO) saw a significant options trade—a 280-310 September call spread that traded 4,002 contracts at an average price of $6.88. By early afternoon, the spread was up modestly, priced at $6.93, giving buyers a 0.6% gain or $0.04 per contract as AVGO’s stock price climbed from $249.28 to $249.57. With over $1.4 million committed, the buyer is risking a sizable amount for a potential maximum gain of about $4.6 million, should AVGO finish above $310 at expiration, 109 days away.
| Spread Details | Value |
|---|---|
| Expiration | 19-Sep-25 |
| Strikes | 280/310 (Call Spread) |
| Contracts Traded | 4,002 |
| VWAP Trade Price | $6.88 |
| Stock Reference Price | $249.28 |
| Days to Expiry | 109 |
| Potential Payout | $4.6 Million (if AVGO > $310) |
To see the specifics or track more multi-leg trades like this one, you can visit the AVGO multi-leg trade analyzer.
Technical Indicators Are Bullish—Stock Is Outpacing the Market
AVGO’s technical profile is undeniably strong. The stock was recently up 3.1% on the day, has gained 94.2% from its 52-week low, and is less than 1% off its high. Importantly, AVGO is trading well above all its major moving averages, indicating a solid uptrend:
- 20-Day MA: 11.3% above
- 50-Day MA: 27.4% above
- 250-Day MA: 34.9% above
- Outperformed SPY in all key timeframes (YTD, 1y, 3y, 5y)
| Duration | AVGO Return | SPY Return | Low | High |
|---|---|---|---|---|
| Today | +3.1% | +0.4% | 243.19 | 250.00 |
| 2 Weeks | +9.2% | -0.5% | 221.60 | 250.00 |
| 1 Month | +29.7% | +6.7% | 195.94 | 250.00 |
| 3 Months | +25.5% | -0.2% | 138.10 | 250.00 |
| 6 Months | +54.7% | -1.2% | 138.10 | 251.88 |
| 1 Year | +84.6% | +14.5% | 128.50 | 251.88 |
| YTD | +7.9% | +1.2% | 138.10 | 250.00 |
| 3 Years | +338.1% | +47.3% | 41.51 | 251.88 |
| 5 Years | +787.3% | +104.8% | 28.74 | 251.88 |
The stock just broke above its expected daily resistance ($248.39), confirming upward momentum. It also consistently trades above the S&P 500 (SPY), whether over the past two weeks or five years.
Option Skew Indicates Bearish Outlook Despite Stock Strength
Contrasting with the technical uptrend, the proprietary 30-day option skew indicator ranks at 18% (on a scale where 0% is most bearish and 100% is most bullish over the last year). This low reading suggests traders are paying more for downside protection, pointing to caution in the options market despite AVGO’s strong performance.
This skew may be a reflection of uncertainty around future market volatility or a desire to hedge following AVGO’s significant run-up. Even as buyers of the 280-310 call spread are making a high-upside wager, options market sentiment is flashing a yellow light on the bullishness seen in price action.
News and Catalysts: AI-Fueled Cloud Expansion Gets a Spotlight
Today’s rally comes as Broadcom announces major new AI-powered upgrades to its CloudHealth cloud management suite, bringing FinOps features and AI-driven insights to a broader set of enterprise teams. New features like Intelligent Assist and Smart Summary, unveiled at the FinOps X conference, could be fueling bullish enthusiasm by showcasing Broadcom’s leadership in enterprise cloud innovation.
Key Takeaways: Bullish Technicals vs. Bearish Option Skew—Who Wins?
The data highlights an intriguing clash: AVGO’s stock is powering higher and technicals remain robust, but the options skew suggests professionals remain cautious. The large 280-310 call spread, trading for $1.4 million with a max potential gain of over $4.6 million, sets a high bar: AVGO needs to clear $310 by September 19, 2025, for buyers to capture maximum profit.
Traders intrigued by similar setups or seeking further research on multi-leg trades can explore the multi-leg option trade screener.
Final Thought: Is the heavy call spread activity an early signal that momentum traders expect even higher highs—or a risky wager in the face of institutional caution? AVGO’s story is still unfolding. Whether you lean bullish or bearish, this options activity—and the tension between stock strength and options skepticism—bears watching as expiration draws closer.
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