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 Theta 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 theta report is available for May 22, 2026.

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Theta Verdict

Attractiveness8 / 10
Sizing: Moderate
Primary: Sell put spreads near 320–325 OI/GEX support and sell covered calls or call spreads against long stock where assigned
Invalidation: Close below $320.00 (1w EM lower guardrail $326.32 and strong GEX/support sits at $320.00; break below $320.00 would invalidate the bull/pinning edge)
Confidence:
7 / 10
base 5; +2 GEX/flow strongly aligned (pinning +41.3M); +1 high IV (Avg IV 54.3%) ; -1 spot 6.9% above MP

IV Environment

IV Regime
High
IV vs VIX
Avg IV 54.3% (ATM short-dated IV 51.1%–62.5% across expirations) — rich vs typical large-cap norms; VIX not provided for direct comparison
Favorable?
Yes

Term structure: Front-end vol is elevated and slightly downward sloping past 2–6 weeks (1d ATM 62.5% → 6d 51.2% → 31d ~49.9%) — rich short-dated vols give weekly/near-term edges and 30–45 DTE still attractive

💰Avg IV 54.3% with 1d ATM 62.5% — elevated vol favors sellers
📅Term-structure: highest vol in the next few days / week, then flattens — sell into the front-end skew

Pin Risk Assessment

Spot vs MP: Spot $333.97 is above max pain (~$312 across expirations) by ~6.9%; short-dated max pain pins at $312.50 (4/08) and $310.00 (4/10,4/13).

GEX regime: Pinning (GEX +$41.3M) — dealers are long gamma on net which tends to magnet spot toward clustered short strikes

Gamma flip: ~$250.00Gamma flip ~ $250 — below that dealers become short gamma; current spot is well above, so dealer pinning behavior dominates near current range

OI concentrations: Call walls $360–$390; put floor $220–$300; near-term large OI at $330 call (4,562), $325 call (2,040), and put OI concentrations at $300 (2,829) and $260 (11,604 overall). GEX concentrations: +$5.0M @330, +$3.0M @335, +$2.4M @332.5, +$2.2M @320, +$1.5M @325.

Verdict: Favorable — strong positive GEX and concentrated call-side GEX near $330–$335 create a pinning magnet just above spot, which supports selling puts and defined-risk credit positions below those magnets.

Premium Opportunities

#1
put spread
Sell 320/315 put spread 2026-05-15 (approx 38 DTE)
Aligned with pinning GEX at $320.00 and EM guardrail (1w lower ~ $326.32). High Avg IV (54.3%) and elevated short-dated vols give healthy credit on 30–45 DTE. Selling a 5-wide defined-risk put spread below the current spot captures theta while respecting dealer pin support.
Credit: $1.10-$1.60
Max loss: $3.90
BE: $318.90
Mgmt: Take profits at 50–65% of max credit; roll down (extend DTE by 30–45d) or widen if short strike is tested and position still below $320; cut losses if mark approaches 60% of max loss or AVGO closes below $320. Close before any unscheduled material news or if GEX flips materially negative.
#2
cash-secured put (CSP) / put spread ladder
Sell 325 put 2026-04-24 (17 DTE) or sell 325/320 put spread 2026-04-24 (17 DTE)
Strong OI and GEX magnet at 325 ($1,079,362 GEX concentration; put OI shows activity). Short-dated 17 DTE gives concentrated theta; choose naked CSP only if willing to own shares — otherwise prefer defined-risk 325/320 put spread for about a third of capital at risk. MP sits far below but concentrated flow at 325/330 supports this strike.
Credit: $3.25-$3.75
Max loss: $296.75
BE: $322.75
Mgmt: For naked 325 put: close or roll out/ down at 50% of notional or if price < $320; for 325/320 spread: take profits at 60% of max credit; roll to later month if short strike tested and fundamentals unchanged; close positions prior to 2026-05-01 if rolling into longer DTE to avoid pin cluster shifts.
#3
iron condor (defined-risk)
Sell 325/335 call spread + 300/290 put spread 2026-05-22 (45 DTE) — adjust widths to balance credit
High IV and pinning regime create wide range to collect premium; 45 DTE sits near good theta/vega balance. Use defined-risk wings because of elevated IV and potential for short-term moves. Call side protected by call OI walls further out ($360–$390) and GEX pin near $330–$335 which reduces upside gamma blowout risk.
Credit: $2.20-$3.00
Max loss: $7.80
BE: Lower ~ 297.00 / Upper ~ 338.80
Mgmt: Take profits at 40–50% of max credit; close/adjust if either short strike is touched (roll that side outward or convert to broken-wing); cut entirely if underlying prints outside 1w EM guardrails ($326.32/$341.62) on close.
#4
covered call / buy-write
Buy stock and sell 350 call 2026-05-15 (38 DTE) or sell 345 call 2026-04-24 (17 DTE)
If willing to own AVGO, selling calls at 345/350 collects elevated IV while capped upside is acceptable given strong GEX pin near 330–335. Premiums reflect elevated IV (e.g., 345 call mid ~ $3.70 in chain for 4/24), improving yield on stock basis.
Credit: $2.32-$3.70
Max loss: Downside to stock (net basis = stock price - premium received)
BE: $331.65
Mgmt: Close calls early at 50% of premium captured if stock rallies toward strike; roll up-and-out if assigned risk is acceptable; if stock drops below $320, consider buyback and reestablish cheaper or shift to put spreads.
#5
calendar (vol/day + skew play)
Sell 2026-04-17 (10 DTE) 330 call and buy 2026-05-15 (38 DTE) 330 call (calendar)
Short-dated front-end IV is highest (1d/3d ATM = 62.5%/56.2%). A calendar captures front-end theta bleed while remaining long the longer-dated vol exposure — works with pinning GEX near 330 which is just -1.2% from spot and a natural target.
Debit: $0.20-$0.60
Max loss: $1.00
BE: Depends on net debit and forward vol; P&L peaks if spot near 330 at short expiry
Mgmt: Close the short leg at 50–70% profit or if spot moves > ±2.5% away from 330; unwind calendar before short expiry if IV collapses or if short leg is breached significantly.

Risk Alerts

!Max pain short-term cluster at $312.50 (4/08) and $310.00 (4/10–4/13) — while spot is above, these are downside magnets if selling pressure builds.
!Gamma flip ~ $250 — a structural break below this level would flip dealer behavior and accelerate moves; not immediate but keep on watch for large gap-down scenarios.
!Concentrated short-dated unusual call flow into 4/08 strikes (325–335–340 OTM calls) — could compress short-dated skew and create short-squeeze pin behavior into expiry.
!High Avg IV (54.3%) — favorable for sellers but also indicates event/uncertainty; use defined-risk structures when selling into very short-dated expirations.
!If you sell naked puts (CSP), be prepared for assignment — strong put OI clusters at 300/260 indicate potential levels where institutional activity may force large deltas.
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This theta reflects the market close on April 7, 2026.
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