thetaOwl

MSFT

Microsoft CorporationClose $412.67EOD only
Max Pain
$415.00
Next expiry May 29, 2026
Expected Move
±$8.15
2.0% from close
Price Gap
+2.33
Distance to max pain
IV Rank
20
Low premium
P/C OI
0.46
Slightly call-heavy
Consensus
8.5/10
Bullish tilt
Published snapshot: May 27, 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 27, 2026 close
MSFT Earnings Report
Analysis based on market close April 10, 2026

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

You are viewing an older report from April 10, 2026. A newer earnings report is available for May 26, 2026.

View latest report

Earnings Verdict

MSFT is in a pinning regime (spot at Max Pain $370) with normal volatility (Avg IV 35.0%) and dealers positioned to damp moves (GEX +$52.7M). Best strategy is a directional/volatility trade using the May 01 expiration that captures the April 29 earnings window (buying premium or a calendar/straddle into the event). Key risk: guidance-driven gap that exceeds EM guardrails and defeats dealer pinning.

Confidence:
6 / 10
base 5; +1 pinning (GEX +$52.7M) and spot at MP; -1 mixed flow/net premium negative
Most important: IV term structure shows a large jump into the 21d tenor (ATM 40.3% on 2026-05-01) — watch 21d IV trajectory into the print.
📌Spot at Max Pain $370 and GEX concentrated at $370/$375/$380 — pinning regime likely narrows realized moves near-term.
🧾Earnings date 2026-04-29 — 21d IV (May01) at 40.3% is the clearest sign the market is pricing a big event for that window.
🔥Historical EPS: 4/4 beats (100%); consistent upside bias but do not conflate beat-rate with magnitude of move.

Regime Classification

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

Earnings Overview

Next earnings: 2026-04-29 (19 days)explicit

Expected moves:

  • 2026-04-24 (14d): 7.42 (4.2%) [$355.44 - $386.29]
  • 2026-05-01 (21d): 8.30 (7.6%) [$342.57 - $399.17]

IV Setup

Term structure: Short-dated IV is suppressed (3d ATM 19.4%, 5d 24.1%) with a sharp jump into the 21d tenor (2026-05-01 ATM 40.3%) — classic forward spike where dealers price in the earnings event in the 21d slice.

Crush estimate: ~10-14 vol pts (21d ATM 40.3% likely re-pricing back toward mid-30s after earnings; reference 14d ATM 26.9% and longer-dated mid-30s).

Skew: Skew modestly neutral-to-put-rich in near-term chains (puts richer in some strikes around $360-$370 on short expiries), but overall P/C OI and volume ratios are low (P/C vol 0.50, P/C OI 0.45) indicating more call-side interest at far strikes.

Historical Context

Beat rate: 100% (4/4 quarters; all historical EPS actuals > estimates)

Avg move vs expected: Not directly provided in dataset (historical EPS beats but move magnitudes not summarized).

Directional bias: Consistent upside after prints (all 4 historical EPS beats).

Key Levels

1$370.00 (max pain / pin magnet)
2$375.00 (GEX +$1.6M pin, near-term call/put interest)
3$380.00 (GEX +$2.4M pin magnet / call OI cluster)

Flow Highlights

Very large 2026-04-13 call flow at $375 (Vol=7,800 OI=1,028) and concentrated GEX at $375/$380 (combined +$4.0M).

Short-dated flow and dealer gamma are biased toward pinning around $375-$380 — conviction in dealers to damp moves in the $370-$380 band ahead of bigger forward-dated event pricing.

Top premium sellers/buyers show heavy net premium on high strikes ($490/$480/$460) with net premium negative (net selling at high strikes), while $400 call shows positive net premium ($15,483,256).

Large institutional positioning concentrated far OTM calls and a notable block of premium at $400; long-dated directional positioning likely skewed to upside tails while near-term dealers lean to pinning.

Strategies

Directional long straddle (earnings window)
Buy 370 straddle exp 2026-05-01 (buy 370C + buy 370P May01)
Debit: $28.00-$35.00
Max loss: $35.00
Max gain: Unlimited
BE: $342.57 / $399.17 (approx, using EM 21d ±$28.30)
Trigger: Enter 3-7 days before print if 21d IV has stopped spiking and mid-40s IV not yet printed.
21d ATM IV at 40.3% is pricing event; straddle captures large gap risk and historical tendency to beat supports upside scenarios; use May01 to capture the print.
Outperforms: Actual post-earnings move exceeds the 21d EM (~±7.6%) or guidance drives a large gap; benefits from continuation of IV into earnings (buying into a peak).
Underperforms: Stock pins near $370 and realized move is small; large IV crush reduces expected payoff.
Debit call spread (upside lean with cheaper theta)
Buy 370C / Sell 400C exp 2026-05-01
Debit: $6.50-$10.50
Max loss: $10.50
Max gain: $23.50
BE: Approx spot + cost (breakeven ~ $376.5 - $381 depending on fill)
Trigger: Enter if you have modest bullish bias and want to limit IV crush sensitivity vs a straddle.
Cheaper directional exposure that benefits from upside while capping cost; uses available strikes ($370 and $400 are in the strikes list and $400 is a known call OI wall).
Outperforms: Stock gaps up 3-8% into/after earnings (within May1 EM $342.57-$399.17 but toward upper band) and IV contraction is moderate.
Underperforms: A small pin near $370 or a very large gap beyond the wide spread cap (> $400) where upside is more profitable but spread caps gains.
Short iron condor (premium collection, pin bias)
Sell 365P / Buy 360P and Sell 380C / Buy 385C exp 2026-04-24 or 2026-05-01 (prefer 04-24 if you want to avoid the largest IV spike but 05-01 collects the event premium).
Credit: $1.40-$3.00
Max loss: $4.60
Max gain: $3.00
BE: Lower BE ~ 361.6, Upper BE ~ 383.6 (example with mid credit 2.00)
Trigger: Enter 1-3 days before earnings if pinned and IV remains elevated in 21d but you prefer premium collection.
Regime is pinning at $370 with concentrated GEX at 370/375/380 — collecting premium around the pin is historically productive when dealers damp moves.
Outperforms: Stock stays inside the 2-week EM guardrails ($355.44-$386.29) and dealer pinning (GEX +$52.7M) helps keep price range tight.
Underperforms: Large gap beyond sold wings (move > ~3-4%) or post-print volatility expansion; also poor if liquidity in sold wings dries up.

Risk Assessment

!Gap risk: Earnings-related guidance can produce gaps larger than the 21d EM ±$28.30 (7.6%); short premium strategies vulnerable to rapid gaps.
!IV crush: 21d ATM sits at 40.3% and is likely to compress post-print toward mid-30s; long premium will lose value from crush even if directional move occurs but can still profit on large moves.
!Liquidity: Near-term strikes around $370-$380 show heavy volume and OI (e.g., $375 call Vol 7,800 OI 1,028; $380 call OI 3,269) — good liquidity. Wider strikes ($400+) have meaningful OI but lower immediate liquidity; use size discipline.
!Sizing: Given mixed flow and large net premium sales (-$253.1M), keep position size moderate vs account and avoid aggressive credit exposure across multiple expirations.
!Dealer-driven pinning: GEX +$52.7M implies dealers will hedge to keep spot near pins; aggressive directional bets should account for dealer hedging friction which can compress realized moves.

What to Watch

?21d ATM IV (2026-05-01) trajectory — currently 40.3%; rising into the print favors long volatility trades, falling favors selling premium.
?Unusual flow at $375-$380 calls (Vol spikes) and the $370 puts (Vol 5,033 OI 332) — heavy short-dated activity can signal retail/dealer positioning.
?Net premium and P/C ratios (Net Premium -$253.1M, P/C vol 0.50) — note large institutional premium placement at far strikes that can alter tail behavior.
?Price action relative to EM guardrails: 2d $365.71/$376.03 and 1w $362.64/$379.09; breaches invalidate iron/condor assumptions.
How to Use These Reports
This earnings reflects the market close on April 10, 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.