
$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 MoveFull 7-day option move~12.5%~$61 $426–$548The 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 upsideA 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 ExpectedFront 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 pointsOr roughly:30–40% IV crush in the front weekSo even if AVGO moves up, short-dated calls can still get punished unless the stock beats the implied move hard.Key TakeawayAVGO 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 reactionFor puts:$440 or lower = bearish move beats expectationsAnything 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.The copyright of this article belongs to the original author/organization.
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