Focus on COMPUTEX 2026! Will the entire AI supply chain ignite?

Option Mover The Moo

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Bullish Volatility Hunter | ComputeX AI Infrastructure Rally! AVGO and CRDO Surge Ahead of Earnings – Learn How to 'Effortlessly Profit' from High IV Premiums

Hello everyone, and welcome to this week's 'Bullish Volatility Hunter'.

The AI infrastructure supply chain will seetwo major earnings reports—one of the leading companies in the optical communications sector $Credo Technology (CRDO.US)$will be the first to report earnings after U.S. market hours on June 1,followed by the AI networking infrastructure giant $Broadcom (AVGO.US)$ then which will wrap up the week with its post-market earnings release on Wednesday (June 3).

Broadcom saw single-day options volume soar to 450,000 contracts ahead of earnings, with open interest nearing 2 million contracts and implied volatility (IV) already climbing to elevated levels; Credo Technology has also seen multiple institutions aggressively raise their price targets, driving heightened trading activity recently.The earnings season window marked by high option premiums and significant market divergence is the golden period for options sellers to collect premiums.

This Week's Hottest Earnings Calendar

[June 1 Post-Market US Trading] Credo Technology (CRDO)

Credo Technology will release its latest earnings after the US market close on June 1.

Investors are currently focused on two key metrics:

1. Progress in shipments of AEC active copper cables and next-quarter business guidance.Given that Credo Technology's revenue is heavily dependent on large tech companies such as Microsoft, the market urgently needs the latest data to confirm a critical fact: are these major customers accelerating additional orders for the product, or have they already purchased sufficient equipment and entered a temporary inventory digestion phase?

2. Integration of the DustPhotonics acquisition.Just last week, Credo Technology completed its acquisition of DustPhotonics, a company specializing in optical transmission chip technology. During the upcoming earnings conference call, if management can clearly articulate how much synergistic revenue—the additional incremental earnings generated post-merger—the combined entity will achieve, it will directly determine how investors assess the long-term value of the company’s future product portfolio.

[After U.S. market close on June 3] Broadcom (AVGO）

Broadcom will report earnings after the U.S. market close on June 3, marking the most sentiment-driven earnings season in the past six months.

There are three key focal points for this earnings report:

1. The revenue contribution from AI custom chips (XPUs) and guidance on the second-half customer pipeline—The procurement pace of major customers like Google TPU and Meta will determine whether Broadcom can sustain the growth momentum of its AI narrative.

2. Whether the subscription-based Annual Recurring Revenue (ARR) from VMware post-integration aligns with the full-year target.

3. The company’s gross margin trend,The shifting contribution of the company's two core businesses—hardware chip manufacturing and software subscription services—to total revenue will, for the first time, take clear shape in this quarter's financial results, profoundly impacting overall profit margins.

IV Structure Analysis

Credo Technology (CRDO)

Reference date: June 1

Current IV (116.7%)At the 97th percentile over the past year—In simple terms: in more than 245 of the past 252 trading days, options were cheaper than they are today. An IV rank of 84 further confirms that the current elevated IV is not driven by short-term 'noise,' but rather reflectsa structurally expensive regime.IV/HV = 1.20x, indicating option premiums are approximately 20% richer than realized volatility,with substantial excess premium.

Broadcom (AVGO)

IV/HV = 1.57x isOne of the securities with the highest premium multiples this week—Historical volatility is only 39%, while the market is pricing in a future volatility as high as 61.3%,This 22-percentage-point 'volatility premium' represents excess return potential that option sellers can 'harvest.'With an IV Rank of 75 and IV Percentile of 89%, both indicators suggest current option prices are significantly overvalued.

Limited-time high IV premium option strategy

Credo Technology (CRDO)

Sell Put Strategy Reference

Suggested strike price: $200 (anchored above the 20-day moving average of $195.46, providing a buffer zone)

Suggested expiration date: June 5, 2026

Estimated premium: approximately $700 per contract, equivalent to a $7/share reduction in holding cost (actual prices can be checked in the Futubull app under: Stock > Options Chain)

Covered Call Strategy Reference

Suggested strike price: $260 (10% above current price; anchored to the upper Bollinger Band at $235.56, leaving ample buffer space)

Suggested expiration date: June 18, 2026

Estimated premium: approximately $1,985 per contract, equivalent to a $19.85/share reduction in holding cost (actual prices can be checked in the Futubull app under: Stock > Options Chain)

Comprehensive scenario analysis of earnings

Broadcom (AVGO)

Sell Put Strategy Reference

Reference strike price: $410

Reference expiration date: 2026-06-12

Reference premium: approximately $880 per contract, reducing the holding cost by $8.8 per share (actual prices can be checked in the Futubull app under: Stock → Options Chain)

Covered Call Strategy Reference

Reference strike price: $500 (current price + 10%; above the upper Bollinger Band of $440 with sufficient buffer)

Reference expiration date: 2026-06-12

Reference premium: approximately $922.5 per contract, reducing the holding cost by $9.225 per share (actual prices can be checked in the Futubull app under: Stock → Options Chain)

Comprehensive scenario analysis of earnings

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Risk Warning

An option is a contract that gives the holder the right, but not the obligation, to buy or sell an asset at a fixed price at any time on or before a specific date. The price of an option is influenced by various factors, including the current price of the underlying asset, the strike price, the time to expiration, and implied volatility. Implied volatility reflects the market's expectation of the option’s volatility over a certain period in the future. It is derived inversely from the Black-Scholes (BS) pricing model and is generally considered an indicator of market sentiment. When investors expect greater volatility, they may be more willing to pay higher prices for options to help hedge risks, leading to higher implied volatility. Traders and investors use implied volatility to evaluate.Option priceto enhance attractiveness, identify potential mispricing, and manage risk exposure.

Disclaimer

This content is for reference only and should not be considered as an offer, solicitation, invitation, or advice to buy or sell any investment product or make any investment decision. It should also not be interpreted as professional advice. Options contracts are derivative products and may not be suitable for all investors. You should carefully consider your own investment experience, investment objectives, financial resources, and other relevant conditions before deciding whether to participate in such transactions. The risk of loss in trading options contracts can be substantial. In some cases, losses may exceed the initial margin deposited. Even if you have set contingent orders, such as 'stop-loss' or 'limit' orders, they may not prevent losses. Market conditions may render such orders unexecutable. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be responsible for any shortfall in your account resulting from such liquidation. Therefore, before trading, you should study and understand index options and carefully consider whether such trading is suitable for you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and the rights and obligations upon expiration.

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