IV is low. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 8.4% — cheap vs history
IV/HV 0.85x — IV ≤ HV
Sector percentile 13% — below sector median
Front/Back 1.42x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 22.0% — normal range
Effective IV 64.4% (ATM 22.0% + spread 21.2% + bias) — good value
Total drag 30.87% (spread 21.20% + slippage 9.67%) — high friction
Vega efficiency 7.77 (vega 16.463 / spread 21.20%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -43% (strong bearish) — Raw: -41%
|OI skew| 18.1% — put-heavy
Vol skew +57.3%, OI skew -18.1% — divergent (opposite)
0-DTE 31%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +74%, ATM: -51%, OTM: -32% — bullish (ITM/ATM divergent)
Sector P/C percentile 15% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.7x avg — normal
Vol/OI 3.5% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +7.5% (5d) — building
Sector activity percentile 52% — neutral vs sector
Large trade volume 81% — heavy institutional
Aggressive execution 28% — patient
Conviction -43 (bearish) — moderate
Can I trade efficiently?
Evaluates
Spread 21.2% — wide
OI 1,516,595 — deep
Volume 52,381/day — active
$1.06 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 28% — tighter than sector
Depth 318.4 contracts (bid:75.6 ask:242.8) — adequate
Avg slippage 9.67% — poor
Is now a good time?
Considers earnings proximity,
Slope +42.0% — backwardation
IV percentile 8% — buyer opportunity
IV kink 6.0pts — no clear event
θ/ν ratio 594.34 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -43% @ 71% consistency — STRONG directional (bearish)
Score 111 (ITM 20% + inst 81%) — HIGH institutional
For educational purposes only. Not investment advice.