ThetaOwl

ANET Theta Gang Report

Analysis based on market close March 31, 2026

Theta Verdict

Attractiveness7 / 10
Sizing: Moderate
Primary: Sell defined-risk put spreads below major OI support
Invalidation: Close below $105 gamma flip / major put wall
Confidence:
5.5 / 10
base 4; +2 high IV; +1 defined-risk; -1 trending GEX; -0.5 moderate liquidity

IV Environment

IV Regime
High
IV vs VIX
IV 58.4% — extremely elevated
Favorable?
Yes

Term structure: Humped at 5/08 (61%) and 5/15 (59.3%), normal backwardation near-term

💰IV >50% across all expirations — rich premium for sellers
⚠️High IV implies elevated risk — use defined-risk spreads

Pin Risk Assessment

Spot vs MP: Below max pain by 5.6% (spot $122.78 vs MP $130)

GEX regime: Trending (GEX -$7.0M — pro-cyclical)

Gamma flip: ~$105.00Below $105, negative GEX accelerates moves down

OI concentrations: Major put wall at $105 (8,655 OI), secondary at $115 (5,436 OI). Call wall at $160 (7,047 OI).

Verdict: Unfavorable — negative GEX suggests trending, not pinning. OI provides support at $105.

Premium Opportunities

#1
put spread
Sell $115/$110 put spread 2026-05-15 (45 DTE)
High IV (59.3%) provides rich credit. Short strike ($115) is above major OI support ($105) but below current spot, offering a 6.3% buffer. Defined risk in a trending GEX environment.
Credit: $1.40-$1.80
Max loss: $3.60
BE: $113.60
Mgmt: Close at 65% profit (~$0.91 credit remaining). Roll up/out if spot breaches $118. Exit entirely on close below $110 (long strike).
#2
put spread
Sell $120/$115 put spread 2026-04-24 (24 DTE)
Shorter DTE captures faster theta decay in high IV (52.5%). Short strike ($120) is just below spot, providing immediate premium. OI at $120 put (3,614) offers minor support. Defined risk.
Credit: $1.10-$1.40
Max loss: $3.90
BE: $118.90
Mgmt: Close at 70% profit (~$0.33 credit remaining). Defend by rolling to 5/15 expiration if tested. Exit on close below $117.
#3
covered call
Sell $135 call 2026-05-01 (31 DTE) against 100 shares
For shareholders. Call strike is 9.9% above spot, above expected move ($128.53 top). High IV (50.4%) provides attractive premium. Max pain at $126 for this expiry offers mild magnetic pull.
Credit: $2.80-$3.30
Max loss: Unlimited (share depreciation)
BE: $125.48
Mgmt: Close call at 50% profit. Roll up and out if spot approaches $132. Consider closing entire position if shares drop below $115.
#4
iron condor
Sell $115/$110P x $140/$145C 2026-05-08 (38 DTE)
Wide range ($30 between short strikes) aligns with high expected move (16.1%). Utilizes peak IV (61%) for maximum credit. Puts anchored near OI support, calls below major $160 call wall.
Credit: $1.70-$2.20
Max loss: $3.30
BE: 111.80 / 143.20
Mgmt: Close at 50% profit. Adjust untested side if spot moves beyond 30% of short strike distance. Exit entire position if spot breaches $112 or $143.

Risk Alerts

!Earnings estimated 2026-05-05 — close all short premium positions before announcement. Never sell naked through earnings.
!Trending GEX regime (GEX -$7.0M) — negative gamma can accelerate moves. Favor defined-risk strategies.
!Major gamma flip at ~$105 — a break below this level could trigger accelerated selling due to dealer hedging.
!High IV (58%) implies elevated volatility expectations — be prepared for larger price swings than usual.
!Moderate liquidity — multi-leg spreads may face slippage. Use limit orders and wide bid-ask assumptions.
!Spot is 5.6% below max pain ($130) — slight upward magnetic pull, but negative GEX is the dominant force.

Read the Theta Gang analysis for ANET. 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.