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 11.0% — cheap vs history
IV/HV 1.15x — IV premium over HV
Sector percentile 16% — below sector median
Front/Back 0.93x — contango
Put/Call IV 1.16x — elevated
ATM IV 23.6% — normal range
Effective IV 90.0% (ATM 23.6% + spread 33.2% + bias) — expensive
Total drag 41.46% (spread 33.21% + slippage 8.25%) — high friction
Vega efficiency 4.34 (vega 14.414 / spread 33.21%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +71% (strong bullish) — Raw: +63%
|OI skew| 29.3% — call-heavy
Vol skew -12.4%, OI skew +29.3% — divergent (opposite)
0-DTE 13%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +100%, ATM: -19%, OTM: +78% — strong bullish (ITM/ATM divergent)
Sector P/C percentile 89% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.5x avg — normal
Vol/OI 0.5% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +1.5% (5d) — stable
Sector activity percentile 12% — quiet vs sector
Large trade volume 38% — institutional presence
Aggressive execution 30% — patient
Conviction +71 (bullish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 33.2% — wide
OI 295,874 — deep
Volume 1,450/day — adequate
$1.66 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 30% — tighter than sector
Depth 253.3 contracts (bid:74.9 ask:178.4) — adequate
Avg slippage 8.25% — poor
Is now a good time?
Considers earnings proximity,
Slope -7.1% — contango
IV percentile 11% — buyer opportunity
IV kink -1.5pts — no clear event
θ/ν ratio 1549.94 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +71% @ 86% consistency — STRONG directional (bullish)
Score 68 (ITM 20% + inst 38%) — HIGH institutional
For educational purposes only. Not investment advice.