IV is low with bullish flow. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 6.3% — cheap vs history
IV/HV 1.12x — IV premium over HV
Sector percentile 10% — below sector median
Front/Back 0.87x — contango
Put/Call IV 1.16x — elevated
ATM IV 20.5% — normal range
Effective IV 98.1% (ATM 20.5% + spread 38.8% + bias) — expensive
Total drag 58.21% (spread 38.81% + slippage 19.40%) — high friction
Vega efficiency 5.08 (vega 19.719 / spread 38.81%) — acceptable
Bullish or bearish?
Analyzes
Conviction-weighted: +100% (strong bullish) — Raw: +100%
|OI skew| 52.9% — call-heavy
Vol skew +100.0%, OI skew +52.9% — aligned
0-DTE 100%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +0%, ATM: +100%, OTM: +0% — strong bullish (ITM/ATM divergent)
Sector P/C percentile 50% — neutral vs sector
Unusual activity?
Detects volume surges,
Volume 1.0x avg — normal
Vol/OI 5.9% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +0.0% (5d) — stable
Sector activity percentile 68% — active vs sector
Large trade volume 0% — mostly retail
Aggressive execution 100% — highly urgent
Conviction +100 (bullish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 38.8% — wide
OI 34 — thin
Volume 2/day — thin
$1.94 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 25% — tighter than sector
Depth 14.5 contracts (bid:13.0 ask:1.5) — thin
Avg slippage 19.40% — poor
Is now a good time?
Considers earnings proximity,
Slope -13.1% — contango
IV percentile 6% — buyer opportunity
IV kink -1.3pts — no clear event
θ/ν ratio 744.11 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +100% @ 100% consistency — STRONG directional (bullish)
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.