Broadcom Inc. shares fell 3.98% to $352.64 by midday Wednesday, extending losses after an intraday low of $342.33, as options flow data indicated speculative call buying amid persistent technical weakness.
Options volume totaled 634,548 contracts at 12:20 PM EDT, with call volume outpacing puts by a ratio of 1.75. The most active call contracts included September expirations targeting $350 to $370, with the September 11 $350 call trading 6,928 contracts against 98 open-interest contracts. November downside protection saw activity in the $300 put, which traded 7,103 contracts versus 6,270 open interest. Three-month implied volatility declined to 38.14%, while the 90/110 skew rose to -1.08 percentage points, indicating a slight reduction in demand for downside hedging relative to upside exposure.
Technical indicators reinforced the bearish bias. The 1-hour, daily, and weekly timeframes all registered "Strong Sell" ratings, with the relative strength index at 36.77, 35.52, and 45.44 respectively. Key support was observed between $347 and $342, with subsequent downside levels at $340. Near-term resistance stood at $354 to $357, while bullish targets aligned with active call strikes included $360 to $362, with a potential extension to $370 in a stronger rebound scenario.
