thetaOwl

AVGO

Broadcom Inc.Close $422.01EOD only
Max Pain
$415.00
Next expiry May 27, 2026
Expected Move
±$8.62
2.0% from close
Price Gap
-7.01
Distance to max pain
IV Rank
42
Middle-high premium
P/C OI
1.17
Slightly put-heavy
Consensus
8.5/10
Bullish tilt
Published snapshot: May 26, 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 26, 2026 close
AVGO Theta 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 theta report is available for May 26, 2026.

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Theta Verdict

Attractiveness8 / 10
Sizing: Moderate
Primary: Sell short-dated (30–45 DTE) defined-risk credit spreads: cash-secured put spreads below spot and call credit spreads above spot
Invalidation: Close below $340.66 (2d EM lower guardrail) — sustained close below $340 shifts thesis toward closing bullish put spreads
Confidence:
7 / 10
base 5; +2 GEX/flow strongly aligned (pinning, bullish flow); +1 GEX positive (+$62.8M); -1 spot 12.2% above MP

IV Environment

IV Regime
High
IV vs VIX
ATM IV ~46.3% (30d) / Avg IV 52.7% vs VIX (n/a) — rich absolute vol for large caps
Favorable?
Yes

Term structure: Front-week ATM: 49.5% (2d), 42.7% (5d) then 44–47% across 2–8 weeks — elevated short-end with workable carry in 30–45 DTE

💰Avg IV 52.7% and 30–45 DTE ATM ~46% provides rich premium for sellers
🧲Pinning gamma (GEX +$62.8M) concentrates dealers around spot which benefits premium decay near current price

Pin Risk Assessment

Spot vs MP: Above by 12.2% (spot $350.63 vs max pain ~ $312 across expirations)

GEX regime: Pinning (GEX +$62.8M) — dealer gamma is long near current strikes creating a magnetic effect to pin

Gamma flip: ~$250.00Gamma flip near $250 — below that dealers would amplify moves; well below current spot, so not an immediate concern for near-term credit trades

OI concentrations: Call walls at $390 (15,216 OI) and $300 call OI 25,662; put concentrations at $250 (14,005 OI), $220 (13,917 OI) and $300 put clusters ~13,353 — near-term GEX pins at $350/$345/$355

Verdict: Favorable — strong near-spot pin magnets (GEX +$5.2M at $350, +$3.7M at $345) support selling premium close to spot; watch downside tail to MP

Premium Opportunities

#1
put spread
Sell 345/335 put spread 2026-05-08 (30 DTE)
High IV and pinning around 345/350 (GEX +$3.7M at $345 and +$5.2M at $350) makes short put spreads below spot attractive; 30 DTE gives time decay with elevated premium (ATM 46.3%).
Credit: $1.10-$1.70
Max loss: $8.90
BE: 343.90
Mgmt: Take profits at 60–70% of max profit (buy back for ~$0.33–$0.44); roll down or close if underlying closes below $340.66 (2d EM lower) or spread reaches 50% of max loss
#2
call spread
Sell 360/365 call spread 2026-05-08 (30 DTE)
360 call is ~+2.7% from spot and has strong flow (Top flow shows $360 net call flow). Positive GEX pinning at 355/360 reduces chance of quick gap above. Defined-risk 5-point call spread captures elevated short-term IV with limited risk.
Credit: $0.70-$1.10
Max loss: $4.30
BE: 361.30
Mgmt: Close at 50–65% of max profit; tighten or roll up if spot > $360 and closing above 360 on daily close; cut losses at 50% of max loss or if IV spikes >+10 vol points
#3
iron condor
Sell 330/325 put spread and 360/365 call spread 2026-05-08 (30 DTE)
Wide 30‑day range (May 8 EM ±10.2% gives $314.76–$386.51) combined with pinning near 350 supports an iron condor that sells premium both sides; call side supported by call flow at 360/370, put side benefits from deep put clusters lower down and dealer pinning.
Credit: $1.50-$2.20
Max loss: $3.80
BE: Lower: ~328.50 / Upper: ~362.70
Mgmt: Target 50% profit to close wings; close or hedge if either short strike is tested on daily close; tighten if net position loses 30% of initial credit
#4
cash-secured put (naked put)
Sell 340 put 2026-04-20 (12 DTE) cash-secured
Very short-dated (12d) put sells capture rich front-week IV (2d ATM 49.5%) and benefit from a strong pin at 340/345; good for collectors comfortable owning shares at ~340.
Credit: $4.20-$4.75
Max loss: $335.80
BE: $336.00
Mgmt: Close at 70% of max profit within last 7 days; roll down-and-out if assignment risk imminent and you want to avoid shares; never hold naked through an earnings or dividend event (none imminent within 2 weeks)

Risk Alerts

!Max pain cluster ~ $312 (across expirations) — large gap down would invalidate bullish edge; spot is 12.2% above MP.
!Gamma flip near $250 — a move that low would accelerate downside (structural risk) though remote for near-term trades.
!Unusual activity: heavy net call flow at $350/$320/$330 and outsized volume on 4/10 strikes (e.g., $340 put OTM vol 2,203) — monitor for aggressive directional blocks near front expirations.
!Short-term IV elevated — while favorable to sellers, be ready for short-dated IV spikes; use defined-risk spreads rather than naked calls when selling upside premium.
!No earnings within 2 weeks (next on 2026-06-03) — still avoid selling large naked positions through unexpected corporate events; check for ex-dividend (none provided).
How to Use These Reports
This theta reflects the market close on April 8, 2026.
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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.