CDNSCadence Design Systems
Options Analysis Report•SERVICES-PREPACKAGED SOFTWARE
Market Cap $97.3B|NASDAQ
● 2026-05-15$352.84
NEUTRAL
Analysis: 2026-05-14 EOD data
1Y +10.7%YTD +13.7%7D -2.7%
Options Vol
3,988
30D
Implied Move
±12.4%
IV Rank
49%
CDNS Options Overview
IV is elevated with bearish flow. Conditions favor premium sellers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
6.0
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks6/9 checks passed
IV Rank
≤35%IV Rank 75.3% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 1.18x — IV premium over HV
Sector Relative≤50%
Sector percentile 32% — below sector median
Term Structure
<1.1xFront/Back 0.97x — contango
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 44.9% — normal range
Spread-Adjusted Value
<80%Effective IV 70.4% (ATM 44.9% + spread 12.8% + bias) — fair
Execution Efficiency
<3.0%Total drag 20.55% (spread 12.76% + slippage 7.79%) — high friction
Vega Efficiency
≥5.0Vega efficiency 87.26 (vega 111.342 / spread 12.76%) — efficient
Sentiment
Bullish or bearish?
4.6
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksBearish - Moderate signal (Conviction: -19%, Raw: -37%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: -19% (bearish) — Raw: -37%
OI Skew Magnitude
≥15%|OI skew| 10.1% — balanced
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew -6.9%, OI skew +10.1% — divergent (opposite)
Conviction Quality
≥2/3 conditions0-DTE 44%, 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: +14%, OTM: -55% — strong bullish (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 85% — very bearish vs sector
Activity
Unusual activity?
2.8
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks1/9 checks passed
Volume Surge
≥1.5xVolume 0.3x avg — normal
Turnover Rate
≥15%Vol/OI 2.5% — 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 +2.8% (5d) — building
Sector Relative≥60%
Sector activity percentile 14% — quiet vs sector
Trade Quality
≥30%Large trade volume 33% — institutional presence
Execution Urgency
≥60%Aggressive execution 30% — patient
Flow Conviction
≥30Conviction -19 (bearish) — mixed
Liquidity
Can I trade efficiently?
4.0
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks3/8 checks passed
Tradeable Spread
≤5.0%Spread 12.8% — wide
Adequate OI
≥10,000OI 160,704 — deep
Active Volume
≥500Volume 3,988/day — adequate
Reasonable Cost
≤$0.50$0.64 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 34% — tighter than sector
Order Book Depth
≥100 contractsDepth 62.300000000000004 contracts (bid:28.1 ask:34.2) — thin
Execution Quality
<1.0%Avg slippage 7.79% — poor
Timing
Is now a good time?
6.7
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks6/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope -3.1% — flat/unclear
IV Percentile Clarity
<30 or >70IV percentile 75% — seller opportunity
Event Detection
≥10pts kinkIV kink 1.4pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 944.38 — favors income trades
Expiration Distribution
≥3 expirations5 liquid expirations — flexible
Event Risk
≥60% (safe)safe window: No events detected
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow -19% @ 59% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 63 (ITM 20% + inst 33%) — HIGH institutional
Directional Strategy Fit
Option Buyers
Long Calls5.3
bullishIV cheap, mixed flow
Long Puts5.6
bearishIV cheap, mixed flow
Premium Sellers
Cash-Secured Put4.6
bullishIV too cheap, mixed flow
Covered Call4.9
bearishIV too cheap, mixed flow
For educational purposes only. Not investment advice.