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
34
Middle-high premium
P/C OI
1.15
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 Earnings Report
Analysis based on market close April 7, 2026

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

You are viewing an older report from April 7, 2026. A newer earnings report is available for May 22, 2026.

View latest report

Earnings Verdict

High-IV, call-skewed regime with strong dealer pinning (GEX +$41.3M) around $330–$335. Best strategy: premium-selling inside the EM (iron-condor/short wings) or a structured bullish spread if you want directional exposure. Key risk: a gap beyond the EM (±~4% short-term) driven by unusual call buying or company news — dealers will try to pin to $330–$335 but a surprise gap could blow through pins.

Confidence:
7 / 10
base 5; +2 GEX/flow strongly aligned (pinning +41.3M); +1 GEX positive; -1 spot 6.9% above max pain
Most important: Watch IV term-structure and large April 8 flow: concentrated, high-premium call buying around $325–$335 is driving short-term pinning.
📌GEX concentration: +$5.0M at $330.00 and +$3.0M at $335.00 — dealers incentivized to pin between $330–$335.
🔊Top premium flow heavily skewed to calls (e.g., $300 net call premium $263.7M) — large institutional activity influencing short IV/skew.
📈Historical EPS: 4/4 recent quarters beat estimates slightly — modest upward bias into fundamentals.

Regime Classification

Vol Regime
High (Avg IV 54.3%, 1d ATM 62.5%)
Gamma Regime
Pinning (GEX +$41.3M; near-term GEX concentration at $330/$335)
Flow Regime
Bullish (net premium heavy on calls; P/C volume 0.48; top premium flow overwhelmingly calls at $300/$330/$320)
Spot vs MP
Above (Spot $333.97 vs MP trend ~ $312)
Gamma flip: ~$250.00Gamma flip near $250 — far below spot; below that dealers would accelerate moves but not relevant inside ±10% trading range.

Earnings Overview

Next earnings: 2026-06-03 (57 days)explicit

Expected moves:

  • 2026-04-08 (1d): : : ±$8.78 (2.6%) [$325.20 - $342.75]
  • 2026-04-13 (6d): ±$7.65 (2.3%) [$326.32 - $341.62]
  • 2026-04-20 (13d): ±$11.25 (3.4%) [$322.72 - $345.22]

IV Setup

Term structure: Sharp short-dated skew: 2026-04-08 ATM 62.5% -> 2026-04-13 ATM 51.2% (kink concentrated on 1–3d expiries). Avg IV 54.3%.

Crush estimate: ~10–12 vol pts on a near-term event (1d ATM 62.5% down toward ~50–52% back-runs within 1–2 weeks).

Skew: Call-heavy flow (top premium flow overwhelmingly into calls at $300/$330/$320) but short-dated OTM put IVs are elevated at extreme strikes; skew is call-centric in premium but puts remain relatively rich in deep OTM strikes.

Historical Context

Beat rate: 100% (4/4 quarters: small EPS beats on each listed date)

Avg move vs expected: Not provided explicitly; recent EPS surprises are small and positive (e.g., 2026-01-31 surprise +0.03), suggesting earnings tend to modestly beat but not wildly reprice the stock.

Directional bias: Slight upside bias around results (consistent small positive EPS surprises).

Key Levels

1$325.20 (EM lower — 2d)
2$342.75 (EM upper — 2d)
3$312.50 (Max pain 2026-04-08)
4$330.00 (Near-term GEX pin, +$5.0M)
5$335.00 (Near-term GEX pin, +$3.0M)

Flow Highlights

Top premium flow: $300 strike net call premium $263,694,088 (calls >> puts).

Large concentrated call premium at $300 suggests institutional call-selling/covered-call structures or large call buying earlier in the chain; contributes to dealer short-delta and supports pinning around nearer strikes.

Unusual activity concentrated on 2026-04-08: heavy vols at $330/$335/$332.50 calls (e.g., AVGO260408C00330000 Vol 12,114 OI 1,118).

Short-dated directional call flow centered at $325–$335 is likely causing the 1–3d IV spike and reinforcing GEX pinning to $330–$335.

Strategies

Short iron-condor (premium sell inside EM)
Sell 2026-04-10 325/320 put spread + sell 2026-04-10 345/350 call spread (credit iron-condor).
Credit: $2.50-$3.50
Max loss: $4.50
Max gain: $3.50
BE: 320 - 2.50 = 317.50 (put side) / 345 + 2.50 = 347.50 (call side) (examples at credit_low)
Trigger: Enter 1–2 days before the short-dated IV peak (into 4/08–4/10) if mid IV remains >50% and you can collect >$2.50 credit.
High short-dated IV (62.5% 4/08) and strong dealer pinning at $330–$335 favor selling premium inside EM; credit cushion sized to wings limits risk.
Outperforms: Stock stays within near-term EM rails (~$325–$343) and IV compresses post-short-dated event.
Underperforms: A gap exceeds EM (move >~4% intraday) or concentrated call buying pushes stock through the short call wing.
Directional debit call spread (bullish, limits IV exposure)
Buy 2026-04-10 330/340 call spread (long 330C, short 340C).
Debit: $4.75-$5.25
Max loss: $5.25
Max gain: $5.75
BE: $334.75
Trigger: Enter if you expect upside continuation and want to avoid front-loaded IV crush — size before large 4/08 flows or just after if IV starts to roll lower.
Call-heavy flow and pinning near $330–$335 create asymmetric upside; a 330/340 call spread captures that while capping premium paid versus a naked call or straddle.
Outperforms: Stock rallies above ~335 into 340 before expiration; benefits from directional move while limiting IV decay vs a straddle.
Underperforms: Stock stays below 334.75 or IV collapses without sufficient price move.
Long straddle (pure event, aggressive)
Buy 2026-04-08 335 straddle (buy 335C + 335P) — short-dated event play.
Debit: $15.00-$18.00
Max loss: $18.00
Max gain: Unlimited (to upside) / large to downside
BE: ~317–353 (example range using midpoint cost)
Trigger: Enter same-day or day-before the 1d IV peak only if you expect a >EM move and accept severe IV crush risk.
Short-dated ATM IV is elevated (62.5% 4/08); pure volatility buyers can win on a large gap, but costs are high and IV crush post-event is likely.
Outperforms: Actual move substantially exceeds the 1d EM (~±$8.78) — >30–40% above EM magnitude.
Underperforms: Pinning holds near $330–$335 and IV collapses post-event.

Risk Assessment

!Gap risk: Short-term EM (1d) is ±$8.78 (2.6%) but concentrated call flow could produce a gap beyond that (4–6% range) if news or block trades hit pre-market.
!IV crush impact: Short-dated IV (62.5% for 4/08) implies ~10–12 vol-point collapse; long straddles risk severe loss from collapse even if price moves modestly.
!Liquidity: Option market is liquid (Total OI 1,508,267; active volume 365,869) but some strikes have wide bid/ask (use mid or limit orders).
!Sizing: Keep sizing conservative on long-dated or outright long-vol trades due to high premium; for credit sellers, ensure wing width matches account risk and avoid naked short exposure.
!Dealer pinning risk: GEX +$41.3M and concentrated GEX at $330/$335 increase probability of pinning near those strikes—premium-selling inside EM benefits but beware of clustering of client buys that can negate pins.

What to Watch

?Short-dated IV trajectory into 2026-04-08 (is 1d IV >60% staying or rolling down?).
?Unusual call prints at $325–$335 (volume spikes / blocks) — these are already present and drive pinning.
?Max pain trajectory (current MP ~ $312 across expirations) vs spot movement — divergence could produce squeeze if large directional flow.
?Any company-specific news ahead of 2026-06-03 (next official earnings) or unscheduled releases that would justify a gap.
How to Use These Reports
This earnings reflects the market close on April 7, 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.

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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.