IV is low with bullish flow. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 10.7% — cheap vs history
IV/HV 1.25x — IV premium over HV
Sector percentile 16% — below sector median
Front/Back 1.14x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 23.5% — normal range
Effective IV 51.0% (ATM 23.5% + spread 13.8% + bias) — good value
Total drag 16.57% (spread 13.76% + slippage 2.81%) — high friction
Vega efficiency 1.15 (vega 1.588 / spread 13.76%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +90% (strong bullish) — Raw: +89%
|OI skew| 98.4% — call-heavy
Vol skew -94.9%, OI skew +98.4% — divergent (opposite)
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +94%, ATM: -100%, OTM: -100% — bullish (ITM/ATM divergent)
Sector P/C percentile 99% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 3.9x avg — hot
Vol/OI 0.4% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +0.5% (5d) — stable
Sector activity percentile 10% — quiet vs sector
Large trade volume 0% — mostly retail
Aggressive execution 4% — patient
Conviction +90 (bullish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 13.8% — wide
OI 20,474 — adequate
Volume 78/day — thin
$0.69 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 29% — tighter than sector
Depth 76.9 contracts (bid:57.7 ask:19.2) — thin
Avg slippage 2.81% — poor
Is now a good time?
Considers earnings proximity,
Slope +14.4% — backwardation
IV percentile 11% — buyer opportunity
IV kink 3.4pts — no clear event
θ/ν ratio 4.89 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +90% @ 95% consistency — STRONG directional (bullish)
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.