IV is low with unusual activity. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 4.3% — cheap vs history
IV/HV 1.34x — IV premium over HV
Sector percentile 7% — below sector median
Front/Back 1.08x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 16.3% — normal range
Effective IV 41.6% (ATM 16.3% + spread 12.6% + bias) — excellent value
Total drag 14.18% (spread 12.64% + slippage 1.54%) — high friction
Vega efficiency 86.12 (vega 108.856 / spread 12.64%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +23% (bullish) — Raw: +19%
|OI skew| 29.9% — put-heavy
Vol skew -21.8%, OI skew -29.9% — aligned
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -22%, ATM: -12%, OTM: +37% — bearish (ITM/ATM aligned)
Sector P/C percentile 91% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.9x avg — normal
Vol/OI 7.7% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +0.3% (5d) — stable
Sector activity percentile 84% — very active vs sector
Large trade volume 36% — institutional presence
Aggressive execution 23% — patient
Conviction +23 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 12.6% — wide
OI 644,090 — deep
Volume 49,786/day — active
$0.63 to cross — expensive
5 liquid strikes — good coverage
Sector spread percentile 23% — tighter than sector
Depth 96.0 contracts (bid:45.0 ask:51.0) — thin
Avg slippage 1.54% — fair
Is now a good time?
Considers earnings proximity,
Slope +8.4% — backwardation
IV percentile 4% — buyer opportunity
IV kink 2.2pts — no clear event
θ/ν ratio 1067.21 — favors income trades
5 liquid expirations — flexible
caution advised: No earnings detected; CPI in 1d (HIGH)
Spread ratio 1.00x — stable
Flow +23% @ 62% consistency — unclear
Score 66 (ITM 20% + inst 36%) — HIGH institutional
For educational purposes only. Not investment advice.