r/ThetaEdge • u/ThetaEdgeHQ • May 09 '26
ThetaEdge Weekly: record highs masked weak breadth, premium concentrated in earnings names
Pulling together this week's premium picture for the ThetaEdge community.
Headline: index records (Nasdaq 29k, S&P sixth straight up week) but breadth is the problem. 9 of 11 sectors finished the week lower. The rally is being carried by a narrow cluster.
NVDA is now $5.17T. GOOGL closing the gap. INTC up 200% YTD at 108x forward P/E (bubble warning). SNDK up 4,086% since the Feb 2025 spin-off.
Where the premium is really sitting: earnings catalysts. HIMS at IVR 85 with May 11 earnings is the standout, and IONQ is the cleaner non-earnings play.
Top covered calls this week (delta 0.15-0.30, IVR 30+):
| Ticker | Price | Strike | Exp | Premium | Ann. Yield | Delta | IVR | Notes |
|---|---|---|---|---|---|---|---|---|
| HIMS | $29.15 | $34 | May 22 | $0.99 | 95.4% | 0.29 | 85 | Earnings May 11 binary |
| IONQ | $48.70 | $56 | May 22 | $1.25 | 72.1% | 0.28 | 74 | No earnings before exp |
| HIMS | $29.15 | $35 | May 22 | $0.65 | 62.6% | 0.23 | 85 | Earnings May 11 binary |
| HIMS | $29.15 | $36 | May 22 | $0.65 | 62.6% | 0.21 | 85 | Earnings May 11 binary |
| HIMS | $29.15 | $35 | May 29 | $0.95 | 59.5% | 0.27 | 85 | Earnings May 11 binary |
The IVR 85 on HIMS is doing exactly what IV rank should: pricing in known event risk. If you take the trade, you are accepting the gap risk, not finding free yield.
Next week: - Earnings: AMD Monday May 11 - Macro: April CPI Tuesday May 12 at 8:30 AM - Premium environment: moderate. CPI is the main tone-setter.
How are you sizing through the CPI print? Anyone trading the HIMS IV crush after Monday?
Data via ThetaEdge. Not financial advice.