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CMICummins Inc.

Options Analysis Report•ENGINES & TURBINES
Market Cap $77.8B|NYSE
● 2026-08-31$564.85
NEUTRAL
Analysis: 2026-08-28 EOD data
1Y +42.9%YTD +8.2%7D -1.2%
699
30D
±9.1%
34%

CMI Options Overview

IV is elevated with bearish flow. Conditions favor premium sellers.

REWARDS

RISK ANALYSIS

4.6VALUESENTIMENTACTIVITYLIQUIDITYTIMING

Snowflake Analysis

Favorable conditions for premium sellers

Learn
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CMI Gamma Walls

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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

levels.

Risk Checks5/9 checks passed
≤35%

IV Rank 71.2% — elevated vs history

<1.05x

IV/HV 1.40x — IV premium over HV

Sector Relative≤50%

Sector percentile 81% — above sector median

<1.1x

Front/Back 0.86x — contango

<1.25x

Put/Call IV 1.16x — elevated

<80%

ATM IV 35.3% — normal range

<80%

Effective IV 51.3% (ATM 35.3% + spread 8.0% + bias) — good value

<3.0%

Total drag 11.87% (spread 7.99% + slippage 3.88%) — high friction

≥5.0

Vega efficiency 204.18 (vega 163.139 / spread 7.99%) — efficient

Sentiment

Bullish or bearish?

4.1
BearishBullish

Analyzes

,
, and flow direction to determine market bias.

Risk ChecksNeutral - Moderate signal (Conviction: -6%, Raw: -5%)
|net sentiment| ≥25%

Conviction-weighted: -6% (neutral) — Raw: -5%

≥15%

|OI skew| 1.5% — balanced

Same sign, |vol skew| ≥10%

Vol skew -14.2%, OI skew -1.5% — aligned

≥2/3 conditions

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

|change| ≥3%

OI change +0.0% (5d) — stable

|weighted flow| ≥20%

ITM: -19%, ATM: +0%, OTM: -3% — bearish (ITM/ATM divergent)

Sector Relative≤40% or ≥60%

Sector P/C percentile 79% — very bearish vs sector

Activity

Unusual activity?

3.3
QuietActive

Detects volume surges,

, and unusual options activity that may signal moves.

Risk Checks1/8 checks passed
≥1.5x

Volume 0.6x avg — normal

≥15%

Vol/OI 3.2% — normal turnover

≥2 days

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

≥5%

OI change +10.0% (5d) — building

Sector Relative≥60%

Sector activity percentile 55% — neutral vs sector

≥30%

Large trade volume 0% — mostly retail

≥60%

Aggressive execution 22% — patient

≥30

Conviction -6 (bearish) — mixed

Liquidity

Can I trade efficiently?

4.3
IlliquidLiquid

Evaluates

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

Risk Checks4/8 checks passed
≤5.0%

Spread 8.0% — wide

≥10,000

OI 21,630 — adequate

≥500

Volume 699/day — adequate

≤$0.50

$0.40 to cross — cheap

≥5 strikes

6 liquid strikes — good coverage

Sector Relative≤40%

Sector spread percentile 81% — much wider than sector

≥100 contracts

Depth 20.1 contracts (bid:11.7 ask:8.4) — thin

<1.0%

Avg slippage 3.88% — poor

Timing

Is now a good time?

6.7
RiskyFavorable

Considers earnings proximity,

, and event calendar for optimal entry timing.

Risk Checks6/9 checks passed
|slope| ≥5%

Slope -13.9% — contango

<30 or >70

IV percentile 71% — seller opportunity

≥10pts kink

IV kink -3.1pts — no clear event

<0.5 or >2.0

θ/ν ratio 978.05 — favors income trades

≥3 expirations

3 liquid expirations — flexible

≥60% (safe)

safe window: No events detected

<1.2 ratio

Spread ratio 1.00x — stable

≥25% strength + ≥50% consistency

Flow -6% @ 53% consistency — unclear

≥40 composite score

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

Directional Strategy Fit

Option Buyers
Long Calls4.7
bullishIV fair, mixed flow
Long Puts5.3
bearishIV fair, mixed flow
Premium Sellers
Cash-Secured Put5.0
bullishIV fair, mixed flow
Covered Call5.6
bearishIV fair, mixed 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.

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