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NOW

ServiceNow, Inc.Close $103.30EOD only
Max Pain
$95.00
Next expiry May 22, 2026
Expected Move
±$4.92
4.8% from close
Price Gap
-8.30
Distance to max pain
IV Rank
55
Middle-high premium
P/C OI
0.72
Slightly call-heavy
Consensus
7.0/10
Bullish tilt
Published snapshot: May 20, 2026 close
End-of-day snapshot

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

Published Snapshot
May 20, 2026 close
NOW Earnings Report
Analysis based on market close April 2, 2026
DirectionalTheta GangFlowEarningsConsensus

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

You are viewing an older report from April 2, 2026. A newer earnings report is available for May 20, 2026.

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Earnings Verdict

Earnings in ~20 days (est. 4/22). IV remains sharply elevated for the 4/24 expiration (63.2%), confirming the crush setup. Historical pattern shows 100% EPS beat rate with a bullish post-earnings bias. Best strategy is selling premium via an iron condor, with a directional call spread as a secondary play.

Confidence:
7 / 10
base 5; +1 strong historical beat rate; +1 clear IV term structure kink; +0.5 elevated IV; -0.5 bearish flow regime
Most important: IV term structure kink at 4/24 (63.2% vs 49.7% pre) confirms earnings pricing. Stock has gapped up 3 of last 4 quarters.
📅Earnings date inferred as ~4/22 based on IV kink at 4/24 expiry. Confirm via company IR.
📊Delta from prior report: Spot declined to $102 (below MP $108). Expected move tightened slightly to ±12.3%. Gamma regime strengthened (GEX more negative).
⚖️Key conflict: Bullish earnings history vs. bearish options flow. Favor defined-risk strategies until flow aligns.

Regime Classification

Vol Regime
High (IV 59%)
Gamma Regime
Trending (GEX $-9.2M — pro-cyclical)
Flow Regime
Bearish (net prem $-76.4M, P/C 1.29)
Spot vs MP
Below max pain by 5.6% (spot $102.00 vs MP $108)
Gamma flip: ~$90.00 — Below $90, dealers amplify moves downward due to significant put OI concentration.

Earnings Overview

Next earnings: 2026-04-22 (20 days)inferred (IV kink at 4/24, 2 days post-estimated date)

Expected moves:

  • 4/24 (22d): ±$12.60 (12.3%) [$89.40 - $114.60]

IV Setup

Term structure: Massive kink at 4/24 expiration (63.2% IV). Sharp drop to 61.3% for 5/01 and 59.4% for 5/08.

Crush estimate: ~10-15 vol pts post-earnings, back to ~50% range.

Skew: Flow remains bearish (P/C 1.29), but top OI strikes show heavy put walls at $90 and $100, and call OI at $125+. Skew appears mixed with defensive positioning.

Historical Context

Beat rate: 100% (4/4 quarters)

Avg move vs expected: No explicit historical EM provided, but price action shows 3/4 quarters closed higher the day after earnings (avg +2.8%).

Directional bias: Bullish. 3/4 quarters gapped up post-earnings. Last 4 quarters: +2.1%, +0.5%, +5.9%, +2.6%.

Key Levels

1$90 (Major Put OI Wall)
2$100 (Major Put OI & near-term MP)
3$108 (Max Pain)
4$115 (Call OI & Unusual Activity)
5EM Bounds: $90 - $115

Flow Highlights

Massive bearish premium flow in June $178, $174, $220 puts (millions in net premium).

Likely institutional hedging or tail-risk protection, not a direct earnings bet given far OTM strikes.

Unusual volume in 4/10 $105 Calls (3,072 vol vs 580 OI, 5.3x) and 4/10 $95 Puts (2,201 vol vs 635 OI, 3.5x).

Near-term directional bets, with call activity slightly outweighing put activity in volume.

Strategies

Iron Condor (Premium Sale)
Sell $95/$90 Put Spread x Sell $115/$120 Call Spread, 4/24 Expiry.
Credit: $2.00-$2.50
Max loss: $3.00
Max gain: $2.50
BE: Puts: $93.00, Calls: $117.50
Trigger: Enter 5-7 days before earnings (mid-April).
Capitalizes on elevated IV (63.2%) and expected crush. Strikes calibrated to the 4/24 expected move ($89.40-$114.60) and key OI levels ($90 put wall, $115 call interest). Historical tendency to gap up but stay within a range supports this.
Outperforms: Stock stays between $95 and $115 post-earnings (within historical EM bounds and key OI levels).
Underperforms: Stock gaps below $90 or above $120.
Bull Call Spread (Directional)
Buy $110 Call / Sell $115 Call, 4/24 Expiry.
Max loss: Cost of spread (~$2.00 est.)
Max gain: $3.00
BE: $112.00
Trigger: Enter on any pullback to $100-$102 before earnings.
Leverages strong historical beat rate (100%) and bullish post-earnings bias (avg +2.8%). Targets a move to the $115 area where there is notable call OI, offering a defined-risk play. Entry near the $100 put OI wall provides a favorable risk/reward.
Outperforms: Stock rallies post-earnings, surpassing $112.
Underperforms: Stock fails to rally or declines.
Strangle Sale (Aggressive Premium)
Sell $90 Put / Sell $120 Call, 4/24 Expiry.
Credit: $8.50-$9.50
Max loss: Unlimited beyond breakevens
Max gain: $9.50
BE: $80.50 and $129.50
Trigger: Enter 3-5 days before earnings if IV > 60%.
Maximum premium capture from 63.2% IV with wider breakevens than an iron condor. Benefits from pinning near the $100-$108 zone (between major put OI and max pain). High-risk, requires willingness to manage a naked position.
Outperforms: Stock stays between $90 and $120, with significant IV crush.
Underperforms: Stock gaps beyond breakevens.

Risk Assessment

!Gap Risk: 12.3% expected move is significant. A guidance miss could trigger a move toward the $90 put wall, especially with trending (pro-cyclical) gamma amplifying moves.
!IV Crush: Estimated 10-15 vol point drop is the primary profit driver for premium-selling strategies. If IV fails to crush sufficiently (e.g., due to market-wide vol spike), short premium plays will underperform.
!Contradictory Signals: Historical earnings bias is bullish, but overall options flow is bearish (net prem -$76.4M). This conflict increases uncertainty.
!Liquidity: Excellent (716K+ OI, 246 active strikes). Tight spreads expected for near-term expirations.

What to Watch

?IV trajectory on the 4/24 expiration into the event.
?Price action relative to the $100 put OI wall and $108 max pain.
?Any shift in the bearish flow regime (P/C ratio) toward neutrality.
How to Use These Reports
This earnings reflects the market close on April 2, 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.