ThetaOwl

NOW Theta Gang Report

Analysis based on market close April 6, 2026

DirectionalTheta GangFlowEarningsConsensus

Theta Verdict

Attractiveness8 / 10
Sizing: Moderate
Primary: Short volatility via calendar spread to exploit IV inversion
Invalidation: Close below $100 gamma flip or if near-term IV expands further
Confidence:
8 / 10
base 7; +1 high IV; +1 pinning near max pain; +1 volatility surface opportunity; -1 trending gamma

IV Environment

IV Regime
High
IV vs VIX
IV 59.8% — very elevated with front-end inversion
Favorable?
Yes

Term structure: Pronounced inversion: 4/24 IV 67.7% vs 6/18 IV 56.2% (11.5-point differential)

💰Rich IV favors sellers
📉Front-end IV inversion >10 points — calendar spread opportunity

Pin Risk Assessment

Spot vs MP: Below by 2.5% (spot $102.42 vs 4/10 MP $105)

GEX regime: Trending (GEX -$8.3M)

Gamma flip: ~$100.00 — Below $100, dealers amplify moves

OI concentrations: Put wall $100 (10,761 OI), call wall $110 (5,119 OI)

Verdict: Mixed — pinning near max pain supports, but negative GEX suggests trending risk

Premium Opportunities

#1
calendar spread
Sell $105 call 4/24 (18 DTE, IV 67.7%) / Buy $105 call 6/18 (73 DTE, IV 56.2%)
Exploits 11.5-point IV inversion; high near-term IV to sell, lower longer-term IV to buy; profits from IV crush and theta decay
Credit: $1.20-$1.60
Max loss: $3.80
BE: See management
Mgmt: Close when short IV collapses (target 50% profit); exit if spot breaches $110 or $95; roll short leg if challenged
#2
put spread
Sell $100/$95 put spread 4/17 (11 DTE)
High IV provides rich credit; $100 is major put OI support; below gamma flip
Credit: $1.00-$1.25
Max loss: $4.00
BE: $99.00
Mgmt: Close at 65% profit; exit on close <$98
#3
iron condor
Sell $95/$90P x $110/$115C 4/24 (18 DTE)
Wide expected move ($90.17-$114.67) with high IV; strikes align with OI clusters
Credit: $1.50-$2.00
Max loss: $3.50
BE: 93.50/111.50
Mgmt: Close at 50% profit; roll if either short strike tested
#4
covered call
Sell $110 call 4/17 (11 DTE) against long stock
High IV provides premium; $110 is call OI wall and max pain for 4/17
Credit: $0.90-$1.05
Mgmt: Close at 80% profit; roll up if spot approaches $108

Risk Alerts

!Earnings on 2026-04-22 — close all positions before announcement
!Gamma flip at $100 — trending below accelerates moves
!High IV (59.8%) — monitor for crush after earnings
!Negative GEX (-$8.3M) suggests trending risk
!Unusual put flow at $178 (June) indicates institutional bearish bets
!Front-end IV inversion may correct quickly — manage calendar spreads actively

Read the Theta Gang analysis for NOW for 2026-04-06. This AI-generated report covers regime classification, key price levels, strategy recommendations, and actionable trade ideas drawn from end-of-day options data including gamma exposure, delta exposure, and implied volatility.