Broadcom (AVGO) options memo

AVGO earnings in 7 days, IV at 90th rank, 8.97% move priced

The Read

AVGO is down 5.94% today at $392.99.

Options traders lean neutral into 2026-08-14, and neutral further out.

A move through the gamma flip level would change how dealers hedge this stock.

Key numbers

• Spot: $392.99
• Lean: conflicted
• Nearest expiry: Mon 8/31
• Implied move: 2.5%
• ATM implied volatility: 47.2%
• Max pain: $365.00
• Pin strike: $400.00
• Gamma flip: $369.86
• Dealer positioning: SHORT GAMMA
• Call wall: $400.00
• Put wall: $355.00
• Put/call open interest: 0.518

Signals

• Options: Max pain rises sharply across expiries: $360 today, $370 by August 28, $385 at the September 4 post-earnings expiry, and $395 by September 11, suggesting dealer positioning is tilted toward upside gravity after the event. ATM IV spikes to 70 at the September 4 expiry, with an expected post-earnings crush to 50, a projected 29% IV collapse.
• Price action: AVGO sits 27.93% below its 52-week high and is down 9.05% month-to-date, entering the earnings event window with 7 days to the September 2 report. Shadow positioning metrics are all normal, adding no microstructure signal.
• Fundamentals: AVGO trades at 68.35x trailing earnings, well above NVDA at 33.98x and TXN at 41.69x, with a strong 38.85% net margin. The last 8 earnings reactions show a bearish tilt: 6 of 8 reaction days were negative, with post-drift fades appearing in 5 of those 6 cases.
• News: BMO set a $455 price target with an Outperform rating, the highest-impact headline at a score of 9. The analyst action tally shows 4 upgrades versus 3 downgrades over 14 days, reflecting a divided but slightly bullish analyst community.