Options/AZO

AZOAutoZone, Inc.

Options Analysis Report•RETAIL-AUTO & HOME SUPPLY STORES

Market Cap $48.4B|NYSE

● 2026-08-31$2961.96

NEUTRAL

Analysis: 2026-08-28 EOD data

1Y -29.1%YTD -10.3%7D -1.6%

Options Vol

712

30D

Implied Move

±8.7%

IV Rank

38%

AZO Options Overview

Mixed signals. Conditions favor premium sellers.

REWARDS

RISK ANALYSIS

Snowflake Analysis

Favorable conditions for premium sellers

Learn

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AZO Gamma Walls

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AZO Hedge Radar

Neutral

Full Hedge Radar

Neither score is at an extreme today. Neither axis is a forecast — this is where AZO sits on protection cost vs. fragility today.

Protection is priced in the fair band (4.29) — the move being priced is 1.98x this name's own median 16-trading-day move, and downside puts carry 0.8 IV points more than at-the-money, measured against this name's own rolling 16-trading-day realized moves (488 overlapping windows). Fragility reads fragile (6.62): it is trading 18% below its hedge wall on a wall graded MEDIUM for reliability, and its realized-vol regime is stable.

Protection cost

4.29/ 10fair

Basis: cross_sectional

Fragility

6.62/ 10fragile

Basis: per_ticker

Value

Is IV priced right?

4.6

ExpensiveCheap

Measures whether options are cheap, fair, or rich relative to historical and peer

levels.

Risk Checks5/9 checks passed

IV Rank

≤35%

IV Rank 66.0% — elevated vs history

IV/HV Ratio

<1.05x

IV/HV 1.48x — IV premium over HV

Sector Relative≤50%

Sector percentile 63% — above sector median

Term Structure

<1.1x

Front/Back 0.87x — contango

Skew Normal

<1.25x

Put/Call IV 1.16x — elevated

Absolute IV

<80%

ATM IV 34.0% — normal range

Spread-Adjusted Value

<80%

Effective IV 64.0% (ATM 34.0% + spread 15.0% + bias) — good value

Execution Efficiency

<3.0%

Total drag 26.67% (spread 15.02% + slippage 11.65%) — high friction

Vega Efficiency

≥5.0

Vega efficiency 484.86 (vega 728.260 / spread 15.02%) — efficient

Sentiment

Bullish or bearish?

6.7

BearishBullish

Analyzes

put/call ratios

open interest skew

, and flow direction to determine market bias.

Risk ChecksBullish - Moderate signal (Conviction: +21%, Raw: +10%)

Flow Direction

|net sentiment| ≥25%

Conviction-weighted: +21% (bullish) — Raw: +10%

OI Skew Magnitude

≥15%

|OI skew| 7.2% — balanced

Volume-OI Alignment

Same sign, |vol skew| ≥10%

Vol skew +22.2%, OI skew +7.2% — aligned

Conviction Quality

≥2/3 conditions

0-DTE 0%, far-OTM 15%, avg DTE 30

OI Momentum

|change| ≥3%

OI change +0.0% (5d) — stable

Smart Money Flow

|weighted flow| ≥20%

ITM: +85%, ATM: +47%, OTM: +3% — strong bullish (ITM/ATM aligned)

Sector Relative≤40% or ≥60%

Sector P/C percentile 42% — bullish vs sector

Activity

Unusual activity?

3.9

QuietActive

Detects volume surges,

block trades

, and unusual options activity that may signal moves.

Risk Checks2/8 checks passed

Volume Surge

≥1.5x

Volume 0.8x avg — normal

Turnover Rate

≥15%

Vol/OI 4.9% — normal turnover

Multi-Day Persistence

≥2 days

1 day(s) elevated — may be one-day event

OI Build

≥5%

OI change +6.8% (5d) — building

Sector Relative≥60%

Sector activity percentile 60% — active vs sector

Trade Quality

≥30%

Large trade volume 0% — mostly retail

Execution Urgency

≥60%

Aggressive execution 20% — patient

Flow Conviction

≥30

Conviction +21 (bullish) — mixed

Liquidity

Can I trade efficiently?

2.5

IlliquidLiquid

Evaluates

bid-ask spreads

, volume depth, and open interest for trade execution quality.

Risk Checks2/8 checks passed

Tradeable Spread

≤5.0%

Spread 15.0% — wide

Adequate OI

≥10,000

OI 14,586 — adequate

Active Volume

≥500

Volume 712/day — adequate

Reasonable Cost

≤$0.50

$0.75 to cross — expensive

Strike Coverage

≥5 strikes

0 liquid strikes — limited options

Sector Relative≤40%

Sector spread percentile 66% — wider than sector

Order Book Depth

≥100 contracts

Depth 11.1 contracts (bid:5.3 ask:5.8) — thin

Execution Quality

<1.0%

Avg slippage 11.65% — poor

Timing

Is now a good time?

7.0

RiskyFavorable

Considers earnings proximity,

time decay

, and event calendar for optimal entry timing.

Risk Checks5/9 checks passed

Term Structure Clarity

|slope| ≥5%

Slope -13.4% — contango

IV Percentile Clarity

<30 or >70

IV percentile 66% — neutral

Event Detection

≥10pts kink

IV kink -4.4pts — no clear event

Theta/Vega Clarity

<0.5 or >2.0

θ/ν ratio 679.22 — favors income trades

Expiration Distribution

≥3 expirations

3 liquid expirations — flexible

Event Risk

≥60% (safe)

safe window: Earnings in 22d (low risk)

Spread Momentum

<1.2 ratio

Spread ratio 1.00x — stable

Flow Momentum

≥25% strength + ≥50% consistency

Flow +21% @ 61% consistency — unclear

Smart Money Timing

≥40 composite score

Score 30 (ITM 20% + inst 0%) — retail dominated

Directional Strategy Fit

Option Buyers

Long Calls5.4

bullishIV fair, bullish flow

Long Puts4.2

bearishIV fair, bullish flow

Premium Sellers

Cash-Secured Put5.5

bullishIV fair, bullish flow

Covered Call4.3

bearishIV fair, bullish flow

For educational purposes only. Not investment advice.

The Options Desk tracks the move options price into every US earnings report the week of Aug 31, next to how much each stock has actually moved on its past prints — plus the SPY, QQQ and IWM expected ranges and the gamma walls that box them in.

More on AZO

AZO gamma walls AZO max pain AZO IV rank AZO options flow