Broadcom Attracts Bullish $153M Option Trade; Coinbase Sees Huge Trades: Options Chatter

$Broadcom (AVGO.US)$ attracted a bullish $153 million call option block trade days before the semiconductor company that’s helping $Alphabet-A (GOOGL.US)$ produce a chip rivaling $NVIDIA (NVDA.US)$, is due to report financial results. That's the biggest block trade posted so far Monday.

Analysts, on average, expect the maker of Google's tensor processing units (TPUs) to post a 24% jump in revenue in the fiscal fourth quarter ended Oct. 31, according to estimates compiled by Bloomberg. Adjusted earnings are seen climbing to $1.87 a share, from $1.42 a year earlier. Free cash flow is anticipated to surge to $9.13 billion, from $5.48 billion a year earlier, according to Bloomberg consensus.

(To see Broadcom's options chain, click here. For the unusual options activities, click here.)

Broadcom's stock has more than doubled over the past year as the company’s partnership with Google turned the semiconductor company into a formidable rival to $NVIDIA (NVDA.US)$. That partnership with the hyperscaler added to the tailwind for Broadcom. In October, OpenAI agreed to buy custom chips and networking components from Broadcom to help power its artificial intelligence services.

JPMorgan analysts including Harlan Sur expect Broadcom to post revenue, earnings and free cash flow to surpass analysts’ average estimate, and raise its guidance, “driven by the continued ramp of Google’s TPU and continued AI demand strength. “We continue to see sustained strong AI fundamentals combined with aggressive synergy/value creation in the software business,” the JPMorgan analysts wrote in a note Monday.

At 12:42:37 p.m. in New York Monday, an active buyer paid a $152.98 million premium for call options that give their holder the right to buy 2.9 million Broadcom shares at $360 each in 39 days.

That transaction for 29,000 call options, each covering 100 shares, represented almost 99% of that contract’s total volume so far and is about 6X the open interest.

Those call options were purchased at about $52.75 a share, which would mean the Broadcom shares would need to rise above $412.75, from its current level of $401 to incentivize the holder of the contracts to exercise them before they expire.

The transaction, labeled as multi-leg, was posted at the exact time when an active seller unloaded call options that give their holders the right to sell Broadcom shares at $310 each by Dec. 19. Those two trades, with a combined premium of $248.57 million, was more than enough to cover the $153 million purchase of the $360 call options. The timing and sizes of the trades could mean that the buyer of the $360 call options was likely just rolling his or her position to a longer expiration date at a higher strike price.

(To see Coinbase's options chain, click here. See Robinhood's here.)

$Coinbase (COIN.US)$ and $Robinhood (HOOD.US)$ attracted millions of dollars in bullish option trades after digital assets saw a second weekly fund net inflows.

Last week, inflows into digital asset exchange traded products outpaced outflows by $716 million, taking the total assets under management to about $180 billion, according to a Coinshares.com report published Monday. About $483 million of the net inflows were in the U.S., the largest market, according to the report.

“Institutions drive the majority of trading activity on leading venues,” with Coinbase accounting for over 80% of total volume, according to Coinshares 2026 outlook. However, competition among trading platforms is intensifying, it said.

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Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Opening new options positions close to or on their expiration date comes with substantial risk of losses for reasons that include potential volatility of the underlying security and limited time to expiration. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period. Certain complex option strategies carry additional risk, including potential losses that may exceed the original investment amount. If applicable, supporting documentation for any claims will be furnished upon request.

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