BWABorgWarner Inc.
Options Analysis Report•MOTOR VEHICLE PARTS & ACCESSORIES
Market Cap $13.8B|NYSE
● 2026-05-15$67.42
NEUTRAL
Analysis: 2026-05-14 EOD data
1Y +103.9%YTD +44.6%7D +9.9%
Options Vol
4,129
30D
Implied Move
±8.6%
IV Rank
80%
BWA Options Overview
bullish flow with unusual activity. No clear edge detected.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
4.5
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks4/9 checks passed
IV Rank
≤35%IV Rank 60.8% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 1.29x — IV premium over HV
Sector Relative≤50%
Sector percentile 52% — above sector median
Term Structure
<1.1xFront/Back 0.95x — contango
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 50.0% — normal range
Spread-Adjusted Value
<80%Effective IV 90.4% (ATM 50.0% + spread 20.2% + bias) — expensive
Execution Efficiency
<3.0%Total drag 30.66% (spread 20.22% + slippage 10.44%) — high friction
Vega Efficiency
≥5.0Vega efficiency 9.35 (vega 18.899 / spread 20.22%) — efficient
Sentiment
Bullish or bearish?
3.5
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksVery Bearish - Strong signal (Conviction: -84%, Raw: -68%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: -84% (strong bearish) — Raw: -68%
OI Skew Magnitude
≥15%|OI skew| 47.2% — call-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +85.0%, OI skew +47.2% — aligned
Conviction Quality
≥2/3 conditions0-DTE 10%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: -30%, ATM: -86%, OTM: +4% — strong bearish (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 11% — very bullish vs sector
Activity
Unusual activity?
5.2
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks4/9 checks passed
Volume Surge
≥1.5xVolume 0.8x avg — normal
Turnover Rate
≥15%Vol/OI 6.6% — normal turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change +7.7% (5d) — building
Sector Relative≥60%
Sector activity percentile 77% — active vs sector
Trade Quality
≥30%Large trade volume 59% — heavy institutional
Execution Urgency
≥60%Aggressive execution 51% — patient
Flow Conviction
≥30Conviction -84 (bearish) — strong conviction
Liquidity
Can I trade efficiently?
3.1
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks3/8 checks passed
Tradeable Spread
≤5.0%Spread 20.2% — wide
Adequate OI
≥10,000OI 62,781 — deep
Active Volume
≥500Volume 4,129/day — adequate
Reasonable Cost
≤$0.50$1.01 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 74% — wider than sector
Order Book Depth
≥100 contractsDepth 543.2 contracts (bid:442.1 ask:101.1) — deep
Execution Quality
<1.0%Avg slippage 10.44% — poor
Timing
Is now a good time?
7.6
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks7/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope -5.5% — contango
IV Percentile Clarity
<30 or >70IV percentile 61% — neutral
Event Detection
≥10pts kinkIV kink -3.1pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 674.95 — favors income trades
Expiration Distribution
≥3 expirations3 liquid expirations — flexible
Event Risk
≥60% (safe)safe window: No earnings detected
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow -84% @ 92% consistency — STRONG directional (bearish)
Smart Money Timing
≥40 composite scoreScore 89 (ITM 20% + inst 59%) — HIGH institutional
Directional Strategy Fit
Option Buyers
Long Calls4.4
bullishIV fair, bearish flow
Long Puts5.5
bearishIV fair, bearish flow
Premium Sellers
Cash-Secured Put4.6
bullishIV fair, bearish flow
Covered Call5.7
bearishIV fair, bearish flow
For educational purposes only. Not investment advice.