thetaOwl

MSFT

Microsoft CorporationClose $419.09EOD only
Max Pain
$417.50
Next expiry May 22, 2026
Expected Move
±$5.98
1.4% from close
Price Gap
-1.59
Distance to max pain
IV Rank
17
Low premium
P/C OI
0.46
Slightly call-heavy
Consensus
9.0/10
Bullish tilt
Published snapshot: May 21, 2026 close
End-of-day snapshot

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

Published Snapshot
May 21, 2026 close
MSFT 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 21, 2026.

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Earnings Verdict

Earnings not imminent in the data (next listed 2026-04-29 TBD) but short-dated options show a clear post-event setup for the coming week: dealers are pinning to $370 (max pain) with GEX concentrated around $372.50–$380. Best strategy for most traders is a structured premium sale (iron/condor) across the near-term expiries to collect elevated premium while staying inside the EM guardrails. Key risk is a guidance-led gap that exceeds the 1- to 2-day expected-move bounds ($366.53–$378.05) and forces heavy deleveraging by short premium positions.

Confidence:
6 / 10
base 5; +1 pinning/GEX; +1 spot near MP (0.6%); -1 mixed flow/net premium negative
Most important: Monitor IV term-kink and intraday movement into the $370–$380 GEX cluster — that region is the pin magnet and will determine whether selling premium or a directional call spread is preferable.
📌Max pain is $370 across near expiries — dealers are positioned to pin toward $370 on expiry flows.
⚖️GEX concentrated at $372.50 (near spot) and $380.00 (+2.1%); these are the primary pin/resistance zones to respect.
📈1d ATM IV = 38.5% (highest in the term structure) — ideal for short-term premium sellers if you accept gap risk.

Regime Classification

Vol Regime
Normal
Gamma Regime
Pinning
Flow Regime
Mixed
Spot vs MP
At

Earnings Overview

Next earnings: 2026-04-29 (TBD)explicit

Expected moves:

  • 2026-04-08 (1d): : ±$5.76 (1.6%) [$366.53 - $378.05]

IV Setup

Term structure: Near-term ATM IV elevated into the 1d expiry at 38.5% with a drop to ~34.9% (3d) and ~30.7% (6d). That creates a clear short-dated kink consistent with a short-term event or positioning.

Crush estimate: ~4–8 vol pts for the 1–3 day expiries (1d ATM 38.5% back down toward the 31–33% level in the following weekly expiries) — short-dated premium is the most actionable.

Skew: Skew is balanced; puts and calls around $370–$380 trade with similar IV bands, though some tails (deep OTM puts and high-strike calls) show elevated IVs.

Historical Context

Beat rate: Available

Avg move vs expected: Available

Directional bias: Available

Key Levels

1$370.00 (max pain across near expiries)
2$372.50 (near-term GEX concentration, +0.1% from spot)
3$380.00 (GEX +$11.6M and call OI cluster; near-term resistance)

Flow Highlights

Large put premium flow at very high strikes (e.g. $490 net premium: Put $41,070,560 vs Call $96,612)

Heavy institutional put buying/synthetic hedging at far-out strikes indicates one-off portfolio moves or protective positions; not the near-term pin drivers but signals large long-dated hedges.

Unusual activity into the 2026-04-08 expiry: $365P Vol=7,810 OI=577; $370C Vol=6,132 OI=512; $372.50C Vol=8,818 OI=1,047

Significant short-dated demand on both sides around the spot — traders are positioning for a near-term event or hedging around $370–$372.50, increasing short-dated skew and supporting a premium-selling opportunity.

Strategies

Defined-bull call vertical (directional, limited risk)
Buy 372.50C / Sell 380.00C exp 2026-04-10
Debit: $3.15-$3.15
Max loss: $3.15
Max gain: $4.75
BE: $375.65
Trigger: Enter after any pullback toward $370 or if IV for 1–3d doesn't spike higher than current levels
Uses available quotes: 372.50C ask 4.65 (buy) and 380.00C bid 1.50 (sell) from the chain, net debit ≈ $3.15. Tactically long upside while limiting outright long-call exposure into a market with positive GEX/pinning.
Outperforms: Stock rallies above the call spread break-even (~$375.65) but stays below $380 at expiry (captures most of spread value); comfortable with dealer pinning but directional upside.
Underperforms: Stock remains below ~$375 or IMMEDIATE IV crush erodes call value pre-move.
Near-term short iron condor (premium sale, income)
Sell 365.00C / Buy 380.00C 2026-04-10 AND Sell 365.00P / Buy 360.00P 2026-04-10 (iron condor, symmetric)
Credit: $2.00-$3.00
Max loss: $13.00
Max gain: $2.50
BE: Lower BE ≈ 362.50; Upper BE ≈ 377.50 (approx, depending on executed fills)
Trigger: Enter 1–3 days before expiry when IV remains at or above current levels and spot sits inside $366.53–$378.05 (1d EM)
Max pain $370 and concentrated GEX at $372.50–$380 make selling two-sided premium attractive; net premium is elevated (Avg IV 35.3%) and P/C flow is skewed toward calls in far strikes but near-term OI favors central pins.
Outperforms: Stock remains inside the 1–3d EM guardrails (e.g. $366.53–$378.05) and dealer pinning to $370–$375 holds; theta decay and positive GEX work in your favor.
Underperforms: A gap outside the 1–3d EM occurs (guidance shock) or a rapid move forces large exercise/assignment before hedges can be adjusted.
Long strangle (tail hedge / volatility play)
Buy 365.00P and Buy 380.00C exp 2026-04-08
Max loss: Premium paid
Max gain: Unlimited
BE: ≈ 365 - put cost / 380 + call cost (dependent on fills)
Trigger: Enter only if you expect a binary guidance event or the IV for the 1d expiry rises above current 38.5% (makes the strangle more expensive but indicates risk of a larger move).
Short-dated IV is highest in the 1d expiry; buying both wings is the straightforward way to capture a tail gap. Use tight position sizing because of IV crush risk.
Outperforms: Stock gaps beyond the 1d EM bounds ($366.53–$378.05) or guidance surprises massively; useful as a crash/outlier hedge.
Underperforms: Stock pins near $370; IV crush post-event reduces realized gains.

Risk Assessment

!Gap risk: 1–2 day EM is ±$5.76 (1.6%), but guidance or macro headlines can exceed this and cause rapid losses for net short premium positions.
!IV crush: Short-dated IV (1d 38.5%) can fall quickly post-event toward 31–33% in following weekly expiries; short premium benefits, long debit strategies suffer.
!Liquidity: Near-the-money strikes (370–380) are liquid (several thousand contracts); very wide strikes or far OTM legs may have thin quoted markets — watch wide bid/ask spreads.
!Sizing: Given GEX +$60.9M and dealer pinning, keep short-premium trades sized to withstand 3–5% gaps intraday unless you actively hedge.
!Counterflow: Net premium negative $-260.4M and mixed flow mean institutional positioning could shift quickly—monitor volume and unusual OTM trade prints.

What to Watch

?IV trajectory in the 1d and 3d expiries (current 1d ATM 38.5%, 3d 34.9%) — a rising 1d IV suggests impending headline risk.
?Spot action through $370 and $372.50 — these are max pain and strong GEX concentrations.
?Unusual flow in short-dated strikes (listed 2026-04-08 prints) — sustained buying/selling there can pre-position the pin.
?Large far-dated put/call premium prints (e.g. $490/$480 flow) for signs of institutional hedging that could alter dealer hedging demand.
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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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.