thetaOwl

MS

Morgan StanleyClose $197.77EOD only
Max Pain
$192.50
Next expiry May 22, 2026
Expected Move
±$4.05
2.0% from close
Price Gap
-5.27
Distance to max pain
IV Rank
12
Low premium
P/C OI
1.33
Slightly put-heavy
Consensus
3/4
Partial coverage
Published snapshot: May 20, 2026 close
End-of-day snapshot

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

Published Snapshot
May 20, 2026 close
MS Earnings Report
Analysis based on market close March 31, 2026

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

Earnings Verdict

MS earnings are inferred for ~April 15 (17 days out). IV is elevated for the 4/17 expiration (42.3% vs 36.5% for 4/10), creating a viable IV crush setup. The stock has a perfect record of beating EPS estimates, but the expected move is moderate at ±7.1%. The bullish flow regime and pinning gamma suggest a contained range, favoring premium selling strategies.

Confidence:
6.5 / 10
base 5; +1 strong historical beat rate; +0.5 elevated IV term structure; -0.5 no explicit earnings date
Most important: IV term structure shows a clear kink at the 4/17 expiration, strongly implying an earnings event. The stock consistently beats EPS estimates.
🎯Earnings date inferred for ~4/15. IV kink at 4/17 expiry is the primary signal.
📈Perfect 4/4 EPS beat history and +$100M net bullish premium flow.
⚖️Gamma pinning near $162 and spot above max pain suggests supportive dealer hedging.

Regime Classification

Vol Regime
Normal (IV 40%)
Gamma Regime
Pinning (GEX +$2.3M — mean-reverting)
Flow Regime
Bullish (net prem +$100.2M, P/C 0.49)
Spot vs MP
Above max pain by 1.3% (spot $164.57 vs MP $162)
Gamma flip: ~$160.00Below $160, dealers may amplify moves due to put OI concentration.

Earnings Overview

Next earnings: 2026-04-15 (15 days)inferred (IV kink at 4/17, EPS est for 4/15)

Expected moves:

  • 4/17 (17d): ±$11.65 (7.1%)

IV Setup

Term structure: Clear kink at 4/17 expiration (42.3% IV) vs 36.5% for 4/10 and 41.1% for 4/24. Elevated IV isolated to post-earnings period.

Crush estimate: ~5-8 vol pts post-earnings, back to ~36-37% range.

Skew: P/C OI ratio of 1.28 shows more put OI, but P/C volume of 0.49 and bullish net premium indicate recent call buying pressure.

Historical Context

Beat rate: 100% (4/4 quarters)

Avg move vs expected: Data not provided for historical price moves vs expected move.

Directional bias: All four recent quarters were positive EPS surprises.

Key Levels

1$160 (Gamma Flip / Major Put OI)
2$175 (Major Call OI Wall)
3EM: $152.5 - $177.5

Flow Highlights

Massive bullish premium flow in deep ITM calls ($60, $55, $65 strikes), net +$90M+. Large bearish flow at $190P (net -$1.8M).

Institutional bullish positioning via deep ITM calls (likely financing/hedging). Retail/speculative bearish bets at $190P.

Strategies

Short Iron Condor (IV Crush)
Sell $152.5/$147P x $177.5/$182.5C 4/17
Credit: $2.50-$3.00
Max loss: $2.50
Max gain: $2.75
BE: 150.0 / 180.0
Trigger: Enter 3-5 days before inferred earnings date (4/15)
Capitalizes on elevated IV at the 4/17 expiry. Strikes placed just outside the 7.1% expected move, aligning with key OI levels. Historical EPS beats suggest a contained positive reaction.
Outperforms: Stock stays within the expected move bounds ($152.5-$177.5) and IV crushes post-earnings.
Underperforms: Stock gaps beyond short strikes, especially below $147 or above $182.5.
Put Credit Spread (Bullish Bias)
Sell $155P / Buy $150P 4/17
Credit: $1.00-$1.30
Max loss: $4.00
Max gain: $1.15
BE: $154.00
Trigger: Enter on any pullback toward $162 (near max pain) before earnings.
Leverages bullish flow regime, pinning gamma near $162, and perfect EPS beat history. Defines risk while collecting premium. Strike below the gamma flip and expected move low.
Outperforms: Stock stays above $154, especially on a positive earnings reaction.
Underperforms: Stock breaks below $150 support.
Long Straddle (Directional Breakout)
Buy $165 Straddle 4/17
Max loss: Cost of straddle (~$11.65 est.)
Max gain: Unlimited
BE: 153.35 / 176.65
Trigger: Enter only if IV for 4/17 remains below 45% and 1-2 days pre-earnings.
A pure volatility play for traders expecting a guidance-driven surprise that exceeds the moderate expected move. High historical beat rate provides a catalyst, but IV crush is a significant headwind.
Outperforms: Stock moves more than ±7.1% (exceeds the priced-in expected move).
Underperforms: Stock pins near $165 and IV crushes heavily post-earnings.

Risk Assessment

!Gap Risk: The 7.1% expected move is moderate for a financial. A major guidance shift could cause a larger gap, breaching condor wings.
!IV Crush: Estimated 5-8 vol point crush is significant. Long premium strategies need a large directional move to overcome this decay.
!Liquidity: Options are liquid with 65 active strikes, but volume is modest (23k). Sizing should be adjusted accordingly.
!Date Risk: Earnings date is inferred from IV kink and EPS estimate, not confirmed. Monitor for official announcement.

What to Watch

?Official earnings date and time announcement.
?IV trajectory for the 4/17 expiration into the event.
?Spot price action relative to the $162 max pain and $160 gamma flip.
?Unusual activity in weekly options expiring immediately after the inferred date.
How to Use These Reports
This earnings reflects the market close on March 31, 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.

How traders use them

Reports are most useful for narrowing the playbook, surfacing entry and risk context, and deciding which raw data page to inspect next.

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.