Jim
2026.06.03 18:56

$Broadcom(AVGO.US) is pricing a monster earnings volatility event.

Spot: $487.11

7-day IV: ~90%

14-day IV: ~74%

30-day IV: ~63%

20–30 day historical vol: ~41%

Implied Move

Full 7-day option move~12.5%

~$61 $426–$548

The number I’d care about most is the earnings-event isolated move: roughly ±$45 to ±$50.

That puts the “market expected” post-earnings range around:

$440 downside / $535 upside

A move through $535+ is where bulls are beating the implied move.

A drop under $440 is where bears are beating the implied move.

IV Crush Expected

Front IV is extremely elevated:

7-day IV: ~90%

Likely post-earnings front IV target: ~55–65%

That means expected IV crush of:

~25–35 vol points

Or roughly:

30–40% IV crush in the front week

So even if AVGO moves up, short-dated calls can still get punished unless the stock beats the implied move hard.

Key Takeaway

AVGO needs a big move, not just a good move.

For calls to really work, I’d want to see AVGO clear the upper implied zone:

$535+ = strong bullish earnings reaction

For puts:

$440 or lower = bearish move beats expectations

Anything between roughly $450–$525 could be where premium sellers win because IV crush eats both sides.

TL;DR:

AVGO is pricing about a ±9–10% earnings move, or roughly ±$45–$50.

Expected range is about $440–$535.

Front-week IV crush likely hits 25–35 vol points, so buyers need a monster move to outrun the crush.

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