thetaOwl

AAL

American Airlines Group, Inc.Close $12.95EOD only
Max Pain
$12.50
Next expiry May 22, 2026
Expected Move
±$0.52
4.0% from close
Price Gap
-0.45
Distance to max pain
IV Rank
38
Middle-high premium
P/C OI
1.86
Slightly put-heavy
Consensus
4/4
Partial coverage
Published snapshot: May 20, 2026 close
End-of-day snapshot

This page reflects AAL options positioning from the latest published market-close snapshot. Intraday price and contract changes are not displayed.

Published Snapshot
May 20, 2026 close
AAL Earnings Report
Analysis based on market close April 2, 2026

Consensus-supported lens with chain history and key metrics in the rail.

Earnings Verdict

Earnings expected 4/23, 21 days out. IV is extremely elevated (65%), presenting a clear crush opportunity. However, the regime has turned decisively bearish since the last report, with negative premium flow and high put/call ratios. The best strategy is a defined-risk short premium play, but be wary of the negative gamma and trending regime amplifying any move.

Confidence:
6.5 / 10
base 5; +1 clear earnings date; +1 strong flow signal shift; -0.5 limited historical move data; -0.5 high VIX environment
Most important: Flow regime flipped from Bullish (+$1.9M) to Bearish (-$1.8M) with P/C ratio surging to 1.25. This signals a significant shift in sentiment ahead of the event.
🔄MAJOR REGIME SHIFT: Flow flipped from Bullish (+$1.9M, P/C 0.49) to Bearish (-$1.8M, P/C 1.25) since the last report.
⚔️Battle lines are $10.00 (103k+ Put OI, gamma flip, max pain) vs. $12.00 (Call OI wall, bullish flow). Stock is currently in no-man's land at $10.84.
📉Unusual activity in 4/10 $11 Puts (1.6x volume/OI) suggests near-term bearish pressure building ahead of the earnings catalyst.

Regime Classification

Vol Regime
High (IV 65%)
Gamma Regime
Trending (GEX $-59.6M — pro-cyclical)
Flow Regime
Bearish (net prem $-1.8M, P/C 1.25)
Spot vs MP
Above max pain by 3.2% (spot $10.84 vs MP $10)
Gamma flip: ~$10.00Gamma flip estimated near $10 due to massive put OI. Below $10, negative GEX could accelerate selling.

Earnings Overview

Next earnings: 2026-04-23 (21 days)inferred (IV kink at 4/24, EPS estimate for 4/23)

Expected moves:

  • 4/24 (22d): ±$1.32 (12.2%) [$9.52 - $12.17]

IV Setup

Term structure: Pronounced kink at 4/24 expiration (61.7% vs ~57-58% in nearby weeks). IV declines after this date.

Crush estimate: ~15-20 vol pts post-earnings, back to ~45% level

Skew: P/C OI ratio of 1.59 shows heavy put open interest, now confirmed by bearish P/C volume (1.25) and negative net premium.

Historical Context

Historical earnings data not available.

Key Levels

1$10.00 gamma flip / max pain / massive put OI
2$11.00 (next max pain)
3$12.00 call OI wall
4EM bounds: $9.50 - $12.50

Flow Highlights

Massive net premium outflow from $18.00 Puts (-$1.09M) and $18.50 Puts (-$965K). Large bearish flow also at $17, $16.50, and $25 Puts.

Significant bearish hedging or speculation in far OTM puts, indicating deep tail risk concerns or portfolio protection.

Strong net premium inflow to $12.00 Calls (+$405K) and $10.50 Calls (+$357K).

Bullish flow persists at key resistance levels ($12) and near the money ($10.50), creating a battleground against the dominant bearish put flow.

Strategies

Short Put Spread (Bearish Flow / High IV)
Sell $10.00 Put / Buy $9.50 Put, 4/24 expiration.
Credit: $0.15-$0.25
Max loss: $0.35
Max gain: $0.20
BE: $9.85
Trigger: Enter on any bounce toward $11.00, 5-10 days before earnings.
Capitalizes on extremely high IV (62%) and targets the massive $10 put OI as support. Aligns with the dominant bearish premium flow by selling puts others are buying. Defined risk limits exposure to a breakdown.
Outperforms: Stock stays above $10.00 through earnings and IV crushes.
Underperforms: Stock gaps below $9.50 at or after earnings.
Iron Fly (Range-Bound / IV Crush)
Sell $10.50 Straddle; Buy $9.50 Put / Buy $11.50 Call, 4/24 expiration.
Credit: $0.40-$0.60
Max loss: $0.50
Max gain: $0.50
BE: $10.00 / $11.00
Trigger: Enter 1-2 weeks before earnings if stock is trading near $10.50.
High IV provides juicy premium. Structure profits from a large crush if the stock doesn't move. Wings are placed just outside the expected move ($9.52-$12.17) for a buffer. Max pain at $10 and $11 supports a pinning scenario.
Outperforms: Stock pins near $10.50 ($10.84 current) and IV crushes dramatically post-earnings.
Underperforms: Stock gaps beyond the $9.50-$11.50 wings at earnings.
Bear Put Spread (Directional, High Conviction)
Buy $11.00 Put / Sell $10.00 Put, 4/24 expiration.
Max loss: Debit paid
Max gain: $1.00
BE: $11.00 - debit
Trigger: On any failed rally below $11.50, or a break below $10.75 support.
Directly plays the shift to a bearish flow regime and high put/call ratios. Targets a break of the key $10.00 gamma flip and max pain level, which could trigger accelerated selling. Defined risk in a high-vol environment.
Outperforms: Stock declines into/after earnings, breaking below the $10.00 support wall.
Underperforms: Stock rallies and stays above $11.00, suffering IV crush and theta decay.

Risk Assessment

!Gap Risk: The 12.2% expected move is large. A break of the $9.50-$11.50 range would hit most short premium strategies. The negative gamma regime means moves can accelerate quickly below $10.
!IV Crush Impact: Estimated crush of 15-20 vol points is severe. Long premium strategies are heavily disadvantaged unless the move is enormous (>15%).
!Liquidity: Good liquidity at $0.5 increments, with massive OI at $10 and $12 strikes for spread execution.
!Sizing: Reduce size due to the 'Trending' negative gamma regime. Pro-cyclical dealer positioning means they will amplify, not dampen, moves, increasing risk.

What to Watch

?Price action relative to the $10.84 spot vs. $10 max pain. A move toward max pain would support pinning/range-bound thesis.
?Whether the bearish flow intensifies or reverses as earnings approaches.
?IV on the 4/24 expiration for any premature compression or further expansion.
How to Use These Reports
This earnings reflects the market close on April 2, 2026.
What the reports do

Each report translates the same market-close options snapshot into a specific lens such as directional bias, premium-selling posture, flow quality, or earnings setup.

How traders use them

Reports are most useful for narrowing the playbook, surfacing entry and risk context, and deciding which raw data page to inspect next.

What to remember

These are interpretation layers, not execution guarantees. Validate the setup against chain liquidity, expected move, and exposure before sizing risk.

If the report conviction and the raw data disagree, slow down and resolve the mismatch before sizing risk.