thetaOwl

AVGO

Broadcom Inc.Close $414.14EOD only
Max Pain
$420.00
Next expiry May 26, 2026
Expected Move
±$11.88
2.9% from close
Price Gap
+5.86
Distance to max pain
IV Rank
44
Middle-high premium
P/C OI
1.14
Slightly put-heavy
Consensus
7.0/10
Bullish tilt
Published snapshot: May 22, 2026 close
End-of-day snapshot

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

Published Snapshot
May 22, 2026 close
AVGO Directional Report
Analysis based on market close April 8, 2026

Historical consensus-supported lens with full content, report chain context, and metric rail.

You are viewing an older report from April 8, 2026. A newer directional report is available for May 22, 2026.

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Outlook

Neutral-to-bullish with a short-term pin near $350 and upside within the 2d EM to $360; Confidence: 7.0/10. Primary supports: large positive GEX $+62.8M concentrated at $350/$345 (pinning), heavy bullish net premium $208.4M and call flow concentrated at $350/$360, and EM guardrails that keep price inside $340.66–$360.61 for 2d. Conflict: max pain pins at $312–$320 across expiries (12.2% below spot) create structural downside pressure if pin breaks; IV is elevated (ATM 49.5% 2d) which raises cost of directional buys.

Confidence:
7 / 10
Base 7.0 from +GEX pinning and bullish net premium; no overriding catalyst observed (earnings not until 2026-06-03).
Supports: GEX +$62.8M with concentrated buckets at $350/$345/$355; net premium +$208.4M; near-term call flow: $350 call net $23.8M, $360 call net $11.5M.
Conflicts: Max pain cluster $312–$320 persistent across expirations; spot 12.2% above MP trend; elevated ATM IV (49.5% 2d) increases downside cost for long gamma.
📌Pinning concentrated at $350 (GEX +$5.2M) — dealers will hedge toward that level intraday
🔥Heavy bullish flow at $350/$320/$330 — institutional call buying is dominant (net premium $208.4M)
⚠️Max pain ~ $312 across expirations — if pin breaks it can accelerate downside toward $320–$312

Regime Classification

Vol Regime
High
High — Avg IV 52.7% and 2d ATM IV 49.5%; near-term vols rich vs longer-dated 30–45d 46.3% but compress after expiry risk.
Gamma Regime
Pinning
Pinning — large positive GEX $+62.8M concentrated at $350/$345/$355 so dealer hedging is mean-reverting toward those pins; gamma flip far below at ~$250 so limited dealer destablization near spot.
Flow Regime
Bullish
Bullish — net premium +$208.4M, P/C volume 0.66, large call flow at $350/$320/$330 supports upside within EM bounds.
Spot vs Max Pain
Above
Spot $350.63 is above max pain (~$312), creating asymmetry: pinning keeps price near spot short-term while persistent MP below creates structural tail risk if pin collapses.
Thesis duration: Multi-week — Pinning and positive GEX concentrated across the next two expirations plus persistent MP trend (~$312) indicate a multi-week mean-reversion regime that can persist 2–4 weeks; prefer 30–45 DTE for core, weeklies for tactical overlays.

Price Range Forecast

Next 2 days
$340.66$360.61
Sustained pin at $350 and heavy call flow at $350/$360; failure below $340.66 would signal dealer unwind.
Next 1 week
$343.81$357.46
Dealer hedging and GEX buckets at $345–$355 should compress moves; breakout requires >$357.46 or < $343.81 with volume.
Next 2 weeks
$336.91$364.36
Persistent positive GEX and bullish flow favor range upper half; reclaim above $364.36 opens wider up toward structural call wall $390.

Key Levels

Max pain pins: $312 (2026-04-08); $315 (2026-04-10); $320 (2026-04-13)
EM guardrails: 2d $340.66/$360.61; 1w $343.81/$357.46
Support: $345.00 · $340.00 · $335.00
Resistance: $360.00 · $355.00 · $370.00
Gamma flip: ~$250.00Approx — based on put OI concentration of 14,005 (28.7% below spot)
Structural: Structural call OI wall at $390 caps large rallies; put floor concentrated $220–$300 forms long-term downside support but is far below spot so not immediate for intraday hedges.

Dealer Positioning (GEX/DEX)

GEX: $+62.8M

DEX: +46.2M shares

Gamma flip: ~$250 (Approx — based on put OI concentration of 14,005 (28.7% below spot))

NTM gamma: Near-term positive gamma concentrated at $350 (+$5.2M), $345 (+$3.7M) and $355 (+$1.6M) — dealers will buy dips and sell into rallies within EM; if spot falls ~-2% (~$343) hedges increase buying, if spot rises ~+2% (~$357) hedges increase selling, both actions create mean-reversion toward $350.

IV Analysis

IV vs VIX: Avg IV 52.7% and 2d ATM 49.5% — rich relative to general market (VIX context omitted) making long premium expensive, favors premium sellers when gamma supports it.

Term structure: Front-end elevated (2d 49.5% → 30d ~46.3%) with a notable 2d–5d drop; short-dated IV rich due to expiry and pinning so calendar/diagonal can capture term structure tail.

Skew: Skew: short-dated puts at $335–$340 show elevated IV (53–57% prints); mispriced opportunity: sell short-dated spreads (weekly) against overpriced 2–5d puts (e.g., $340/$335) or sell near-term calls into pin given heavy call flow.

Flow Analysis

Net premium: + $208.4M bullish; P/C vol 0.66 indicates call-dominant flow

Directional prints: 50.1 call 350 ITM? 2026-04-10 — Large call premium at $350 Net $34.65M (call-heavy) — could be institutional buy-to-open or dealer sell; consistent with bullish flow and likely buy-to-open given net premium. 46.4 call 360 OTM 2026-04-10 — 6,799 vol at $360 call exp 4/10 — heavy short-dated directional interest; bought calls would press upside toward $360, sold calls would be dealer short gamma reinforcing the pin.

Unusual: 53.5 put 340 OTM 2026-04-10 — AVGO260410P00340000: Vol 2,203 vs OI 203 (10.8x) — large short-dated put flow; could be protective buy or put-selling rotation; given overall call-dominant net premium, interpretation leans to buy-to-open protection (tail hedges).

Risks & Catalysts

!Gamma flip ~ $250 — large gap to spot; if a negative macro shock occurs dealers cannot hedge short gamma below that and move could accelerate downward past put floor.
!Concentrated max pain at $312–$320 across expirations — a breakdown below $336–$340 could cascade to MP levels.
!High short-dated IV (2d ATM 49.5%) — long option buyers pay rich vol; sudden vol crush after expiry can hurt longs.
!Large concentrated call buying creates short-gamma dealer exposure that can exacerbate intraday whipsaws near EM bounds.

Strategy Viability

StrategyEdgeBest SetupPrimary Risk
Long stockModerate-Weak
Buy shares at market $350.63
Downside toward $320–$312 MP and high IV environment for hedges
Short stockWeak
Avoid — pinning and positive GEX make trend fades likely; high dealer buy-back risk
Rapid dealer hedging toward $350 can trigger squeezes
Covered callModerate
Buy stock + sell 2026-05-01 355 call (sell high IV near-term call)
Call assignment into rally; limited upside beyond 355
Cash-secured put / put spreadModerate-Strong
Sell 2026-05-01 325/315 put spread (30–45 DTE core)
Breakdown toward MP $312 — widening losses if gap lower
Long callsModerate-Weak
Buy 2026-04-24 360 call (time premium to ride continuation)
High cost (IV elevated) and potential vol crush after pin resolves
Long puts / bear put spreadModerate
Buy 2026-04-10 340/335 put spread (weekly tactical hedge)
Expensive short-dated IV; limited by spread width
Iron condorModerate-Strong
Sell 2026-05-01 315/305 put spread + sell 355/365 call spread (defined-risk 30–45 DTE condor)
Breakout toward MP $312 or rally above 365; short premium into positive GEX is supported but not bulletproof
Calendar / diagonal (sell high-IV leg)Moderate-Strong
Sell 2026-04-10 355 call, buy 2026-05-01 355 call (sell 4/10 IV ~48.9%, buy 5/01 IV ~46.3% = +2.6 vol-pt edge)
Front-week pin release can cost if large gap beyond wings
PMCC / LEAPS diagonalModerate
Buy 2026-07-17 325 LEAP, sell 2026-05-01 355 call (diagonal income, long-term bullish with short-term income)
Requires directional appreciation; roll risk if spot stays elevated
Buy-write collar (protective)Moderate-Strong
Buy stock + sell 2026-05-01 355 call + buy 2026-05-01 315 put (defined risk multi-week)
Cost of put reduces credit; protection to MP levels

Top Plays

#1
Sell 30–45D Put Spread (defined-risk)
Sell 2026-05-01 325/315 put spread
Positive GEX pinning near $350 and multi-week mean-reversion plus elevated short IV make selling puts at 30–45 DTE attractive; spread caps risk below MP while collecting premium.
Credit: $2.00-$3.00
Max loss: $8.00
BE: $323.00
Mgmt: Take 50–70% profit; cut if spot < $320 or IV spikes >+6 vol pts
Traders wanting defined-risk income with multi-week horizon
#2
Sell-front-week Call Calendar (tactical)
Sell 2026-04-10 355 call, buy 2026-05-01 355 call (sell higher-IV near-term)
2d–30d term-structure: near-term IV (4/10) ~48.9% > 5/01 46.3% — selling the rich front-week call into the pin collects premium while longer call retains directional optionality.
Credit: $0.60-$1.20
Max loss: Limited to long call leg cost differential
BE: Roll/adjust if front-week prints in-the-money
Mgmt: Close front leg at >70% decay captured or if spot >$362
Tactical premium sellers who accept short-week risk
#3
Iron Condor 30–45D (defined-risk short premium)
Sell 2026-05-01 315/305 put spread + sell 355/365 call spread
Positive GEX and call flow support range-bound selling; wings placed outside 1-week EMs capture high premium with defined loss.
Credit: $3.00-$4.50
Max loss: $7.00
BE: Lower wing ~312– upper wing ~368
Mgmt: Take 50% profit; widen or roll if spot breaches $340 or IV skews >+5 vol pts
Accounts comfortable with defined-risk short premium over 30–45 DTE

Watchlist Triggers

Entry Triggers
IFIf spot trades and holds $350 for 30 minutesSell 2026-05-01 325/315 put spread
IFIf spot rallies to $357.50 and short-dated IV doesn't rise >+3 vol ptsSell 2026-04-10 355 call (front-week) to collect rich premium
IFIf unusual buy prints at $360 call (volume >4k) during sessionBuy 2026-04-24 360 call for momentum continuation
Exit Triggers
EXITIf spot falls and closes below $320 (near MP cluster)Exit all short premium and hedge with 2026-05-01 315/305 put spread long leg
EXITIf trade P/L hits 60–70% of max profitTake profit and consider re-establishing a smaller size

Tactical Summary

Primary thesis: multi-week mean-reversion within $336–$364 centered on $350 pin; invalidation below $340.66 (2d EM) leading to cascade toward MP ~$312. Regime favors defined-risk short premium (30–45 DTE) and selling rich front-week IV; top plays: 1) sell 325/315 put spread 5/01 (best for defined-income), 2) sell 4/10-5/01 355 call calendar (tactical front-week income), 3) 5/01 iron condor 315/305/355/365 (defined-risk range).
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This directional reflects the market close on April 8, 2026.
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