ThetaOwl

AMAT Earnings Report

Analysis based on market close March 31, 2026

Earnings Verdict

Earnings expected around 5/14 (44 days out). IV is extremely elevated at 65%, presenting a high-probability IV crush opportunity. The best strategy is selling premium via an iron condor, as the stock is historically a consistent EPS beater but tends to under-move its expected move. Key risk is the extended time to earnings, which could see IV bleed before the event.

Confidence:
7 / 10
base 6; +1 for clear IV kink and elevated IV; +0 for mixed flow; -0 for no explicit earnings date but inferred from term structure
Most important: IV term structure shows a massive kink at the 5/15 (45d) expiration (IV 61.2% vs ~55% in surrounding weeks), strongly implying an earnings date of 5/14 AMC or 5/15 BMO.
⚠️Earnings date is inferred from IV term structure kink at 5/15 expiration. Confirm via company IR before finalizing trades.
📈Stock has a 100% EPS beat rate over last 4 quarters, providing a bullish fundamental bias.
💰Extreme IV (65%) offers rich premium to sell, but the 44-day wait requires patience to avoid IV bleed.

Regime Classification

Vol Regime
High (IV 65%)
Gamma Regime
Pinning (GEX +$3.3M — mean-reverting)
Flow Regime
Mixed (net prem $30.9M, P/C 1.26)
Spot vs MP
Below max pain by 3.0% (spot $341.79 vs MP $352)
Gamma flip: ~$300.00Below ~$300, put OI concentration could lead to accelerated selling pressure from dealers.

Earnings Overview

Next earnings: 2026-05-14 (44 days)inferred

Expected moves:

  • 5/15 (45d): ±$61.20 (17.9%)

IV Setup

Term structure: Extreme kink at 5/15 (45d) expiration: IV 61.2% vs 55.8% (5/08) and 58.4% (6/18). Front-week IV (4/02) is 64.5%, indicating general volatility.

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

Skew: P/C volume ratio of 1.26 shows slightly more put activity, but net premium is positive ($30.9M), suggesting larger call purchases. Unusual activity includes large put volume at $360 (4/02) and call buying at $390/$395 (4/10).

Historical Context

Beat rate: 100% (4/4 quarters)

Avg move vs expected: Cannot calculate precise historical EM, but stock consistently beats EPS by $0.03-$0.08.

Directional bias: All 4 recent quarters showed positive EPS surprise.

Key Levels

1$300 gamma flip / major put OI
2$340 (near spot & 4/02 MP)
3$360 (unusual put flow)
4EM: $280 - $405

Flow Highlights

Massive net call premium at $270 ($3.65M), $85 ($2.9M), and $130 ($1.7M).

Likely far OTM call spreads or speculative long-dated bullish bets, not directly related to near-term earnings.

Unusual 4/02 $360 Put: Vol 1,091 vs OI 140 (7.8x), IV 50.2%.

Possible earnings hedge or bet on a sharp drop before the inferred May earnings date.

Strategies

Short Iron Condor (Earnings IV Crush)
Sell $300/$290 Put spread x $400/$410 Call spread 5/15
Credit: $2.50-$3.50
Max loss: $7.50
Max gain: $2.50
BE: 292.50 / 407.50
Trigger: Enter 5-10 days before earnings (early May) if IV remains >55% on the 5/15 expiration.
Capitalizes on extreme IV (61.2%) and the high likelihood of a post-earnings crush. Strikes are placed beyond the 17.9% expected move to provide a buffer, aligning with the stock's historical tendency to beat but not explode.
Outperforms: Stock stays within the wide $290-$400 range post-earnings and IV crushes.
Underperforms: Stock gaps outside the short strikes ($290 or $410).
Long Put Calendar Spread (Bearish/Bearish Vol)
Buy 5/15 $340 Put, Sell 4/17 $340 Put
Max loss: Debit paid
Max gain: Theoretical: Short put decays faster; long put retains earnings vol.
BE: Complex; benefits from IV expansion in long-dated put and theta decay of short put.
Trigger: Enter on any spot strength towards $350.
Exploits the steep IV term structure (58.8% in 4/17 vs 61.2% in 5/15). The $340 strike is near current price and a key max pain level. The P/C volume ratio of 1.26 suggests a slight put skew, supporting this directional vol play.
Outperforms: Stock declines slowly into earnings, and the IV differential between expirations widens or is maintained.
Underperforms: Stock rallies sharply, causing both puts to lose value rapidly.
Naked Put Sale (Premium Capture)
Sell 5/15 $300 Put
Credit: $8.00-$12.00
Max loss: Unlimited below $300, less credit received.
Max gain: Full credit received
BE: $292.00 (if credit $8.00)
Trigger: Enter on a green day, ideally with spot above $345.
The $300 strike has the highest put OI (3,112), is the estimated gamma flip, and is 12.2% below spot—outside the earnings expected move. This provides a high credit for a seemingly strong support level. The 100% EPS beat rate provides fundamental support.
Outperforms: Stock stays above $300 through expiration. Benefits from IV crush and theta decay.
Underperforms: Stock crashes below $300, facing the large OI wall and gamma flip level.

Risk Assessment

!Gap Risk: The 17.9% expected move is enormous ($61). A guidance miss or macro shock could trigger a move beyond the $290-$400 condor wings.
!IV Crush Timing: With 44 days to earnings, IV could bleed significantly before the event, reducing premium for short strategies entered too early.
!Liquidity: OI/Volume is sufficient for analysis but not exceptional (288k OI, 25k Vol). Focus on strikes with high OI ($300P, $400C) for better fills.
!Sizing: Given the high IV and large expected move, position size should be half of typical to account for wider potential swings.

What to Watch

?IV trajectory on the 5/15 expiration over the next 3 weeks for entry timing on short premium plays.
?Spot price action relative to the $340 level (near-term max pain) and $300 (gamma flip).
?Any news or sector volatility (SMH) that could affect IV before the earnings date is confirmed.

Read the Earnings analysis for AMAT. This AI-generated report covers regime classification, key price levels, strategy recommendations, and actionable trade ideas drawn from end-of-day options data including gamma exposure, delta exposure, and implied volatility.