Option Movers | MU Drops Over 7% as Puts Spike; AVGO Tumbles 12% on Volume 3.7× 90-Day Average
On Thursday, the three major U.S. stock indices closed with mixed performances. At the close, the Dow Jones Industrial Average rose by 1.73% to 51,561.93 points; the Nasdaq Composite Index fell by 0.09% to 26,830.96 points; and the S&P 500 Index gained 0.41% to 7,584.32 points.
Total options market volume reached 61,919,477 contracts, with call options accounting for 61%.
Top 10 Option Volumes
$Broadcom(AVGO)fell over 12% in the previous trading session, with 1.15 million options contracts traded, representing a 3.7-fold increase compared to the 90-day average volume. Call options with a $420 strike price expiring on June 5 saw particularly high trading activity, with 34,461 contracts changing hands.
Broadcom's post-earnings results triggered a heavy sell-off, but Wall Street analysts were quick to push back — calling the slide a misplaced overreaction, and arguing that Broadcom's true explosive growth won't be fully unleashed until after 2027.
Deutsche Bank analyst Ross Seymore argued that the lack of an upward revision to long-term guidance stems primarily from management's characteristically conservative stance, rather than market-share losses or data center build-out delays. He forecasts Broadcom's fiscal 2027 AI revenue will hit $125 billion — roughly 25% above the company's own existing guidance — and surge further to ~$190 billion in fiscal 2028. Deutsche Bank concurrently raised its calendar-year 2027 revenue and EPS estimates by approximately 15% each.
A sharp pullback in South Korean stocks weighed on U.S.‑listed memory chip makers. $MicronTechnology(MU)$ slid more than 7%, with 900,000 options contracts traded. Put options struck at $765 and expiring June 5 saw especially heavy volume, with 27,877 contracts changing hands.
Unusual Options Activity
$BankofAmerica(BAC)$advanced over 3% in the previous trading session, with 600,000 options contracts traded—four times the 90-day average volume. Call options with a $53 strike price expiring on June 5 saw exceptionally heavy trading, with 51,857 contracts changing hands.
$MarvellTechnology(MRVL)$rose nearly 5% in the previous trading session, with 540,000 options contracts traded—3.9 times the 90-day average volume. Call options with a $320 strike price expiring on June 5 saw exceptionally heavy trading, with 28,133 contracts changing hands.
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