GAMMA & VOLATILITY$AVGOBroadcom Inc.Open ticker analysis →
Options positioning in Broadcom is stacking up around the $350 strike into Oct 2, 1.9% above where the stock trades at $343.64. Net gamma reads negative, a setup where hedging can speed moves up instead of slowing them down.
What happened
Across 196 contracts in the Oct 2 expiration, the heaviest gamma sits at $350. Net gamma exposure across the chain comes to roughly $70.58M negative, with about $20.78M of premium traded.
This read uses the standard gamma-map convention, counting call open interest as positive gamma and put open interest as negative. Real dealer books can differ, so treat the sign as a guide to the setup rather than a certainty.
Why it matters
When net gamma is negative, hedging chases the move: market makers buy as the stock rises and sell as it falls. Breaks can travel further and faster than usual in that setup.
For scale, Broadcom is a mega-cap semiconductors & related devices company valued near $1.68T, so it takes serious money to move the stock, which is what makes signals like this one worth tracking.
With 1 days left, this is expiration-week territory, when pinning pressure around big strikes is usually at its strongest.
Zooming out, $AVGO has been in a slow fade, down 6.3% over the past 20 sessions, and it trades below its 20-day average of $353.85, near the bottom of that range between $335.20 and $431.94.
The numbers
| Stock price | $343.64 |
|---|---|
| Expiration | Oct 2 (1 days) |
| Peak gamma strike | $350 |
| Strike vs. stock | 1.9% above |
| Net gamma exposure | $70.58M (negative) |
| Premium traded | $20.78M |
| Contracts in chain | 196 |
| 40-session range | $335.20 – $431.94 |
| 20-day average price | $353.85 |
| 20-session change | -6.3% |
Three ways this could play out
Bullish continuation
If $AVGO pushes through $431.94, the top of its recent range, it breaks away from the $350 cluster. With negative gamma, hedging can add fuel and extend the move.
Bearish rejection
If $AVGO drops under $335.20, the bottom of its recent range, the $350 cluster stops acting as support. Negative gamma means hedging sells into the drop and can speed it up.
Neutral stabilization
If $AVGO hovers near $350 into Oct 2, the cluster does its job and expiration-week pinning becomes the story.
What to watch next
- $350: the peak gamma strike and the most likely pin into expiration.
- Oct 2: expiration, when this positioning rolls off and the magnet effect ends.
- Whether net gamma flips sign as the stock moves. A flip from positive to negative often marks a volatility shift.
- $335.20 and $431.94: the edges of the recent trading range.
