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 22.7% — cheap vs history
IV/HV 0.82x — IV ≤ HV
Sector percentile 34% — below sector median
Front/Back 0.93x — contango
Put/Call IV 1.16x — elevated
ATM IV 29.1% — normal range
Effective IV 190.5% (ATM 29.1% + spread 80.7% + bias) — expensive
Total drag 105.77% (spread 80.68% + slippage 25.09%) — high friction
Vega efficiency 1.87 (vega 15.096 / spread 80.68%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: -68% (strong bearish) — Raw: -65%
|OI skew| 27.0% — call-heavy
Vol skew -14.3%, OI skew +27.0% — divergent (opposite)
0-DTE 63%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +100%, ATM: -100%, OTM: -67% — bullish (ITM/ATM divergent)
Sector P/C percentile 89% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.8x avg — normal
Vol/OI 4.8% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +8.2% (5d) — building
Sector activity percentile 62% — active vs sector
Large trade volume 0% — mostly retail
Aggressive execution 18% — patient
Conviction -68 (bearish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 80.7% — wide
OI 1,025 — thin
Volume 49/day — thin
$4.03 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 45% — neutral vs sector
Depth 171.6 contracts (bid:75.1 ask:96.5) — adequate
Avg slippage 25.09% — poor
Is now a good time?
Considers earnings proximity,
Slope -6.7% — contango
IV percentile 23% — buyer opportunity
IV kink 0.6pts — no clear event
θ/ν ratio 1556.29 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -68% @ 83% consistency — STRONG directional (bearish)
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.