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 13.1% — cheap vs history
IV/HV 1.31x — IV premium over HV
Sector percentile 20% — below sector median
Front/Back 0.94x — contango
Put/Call IV 1.16x — elevated
ATM IV 22.2% — normal range
Effective IV 25.3% (ATM 22.2% + spread 1.6% + bias) — excellent value
Total drag 3.75% (spread 1.56% + slippage 2.19%) — high friction
Vega efficiency 253.08 (vega 39.480 / spread 1.56%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +1% (neutral) — Raw: +1%
|OI skew| 47.7% — put-heavy
Vol skew -37.9%, OI skew -47.7% — aligned
0-DTE 17%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -14%, ATM: +5%, OTM: -4% — neutral (ITM/ATM divergent)
Sector P/C percentile 91% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 1.3x avg — normal
Vol/OI 19.3% — high turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +4.6% (5d) — building
Sector activity percentile 94% — very active vs sector
Large trade volume 44% — institutional presence
Aggressive execution 80% — highly urgent
Conviction +1 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 1.6% — tight
OI 11,141,371 — deep
Volume 2,154,387/day — active
$0.08 to cross — cheap
19 liquid strikes — good coverage
Sector spread percentile 34% — tighter than sector
Depth 257.9 contracts (bid:123.4 ask:134.5) — adequate
Avg slippage 2.19% — poor
Is now a good time?
Considers earnings proximity,
Slope -6.5% — contango
IV percentile 13% — buyer opportunity
IV kink -0.7pts — no clear event
θ/ν ratio 390.12 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +1% @ 50% consistency — unclear
Score 74 (ITM 20% + inst 44%) — HIGH institutional
For educational purposes only. Not investment advice.