AInvestOption Pilot Program
Options/LABU
L

LABUDirexion Daily S&P Biotech Bull 3X ETF

Options Analysis Report
AUM $636M|ARCX
● 2026-08-31$295.76
NEUTRAL
Analysis: 2026-08-28 EOD data
1Y +288.1%YTD +87.8%7D -4.1%
4,501
30D
±24.8%
11%

LABU Options Overview

IV is elevated with unusual activity. Conditions favor premium sellers.

REWARDS

RISK ANALYSIS

5.3VALUESENTIMENTACTIVITYLIQUIDITYTIMING

Snowflake Analysis

Favorable conditions for premium sellers

Learn
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LABU Gamma Walls

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Value

Is IV priced right?

5.6
ExpensiveCheap

Measures whether options are cheap, fair, or rich relative to historical and peer

levels.

Risk Checks4/9 checks passed
≤35%

IV Rank 93.5% — elevated vs history

<1.05x

IV/HV 0.83x — IV ≤ HV

Sector Relative≤50%

Sector percentile 96% — above sector median

<1.1x

Front/Back 0.92x — contango

<1.25x

Put/Call IV 1.16x — elevated

<80%

ATM IV 83.1% — crisis-level IV

<80%

Effective IV 108.5% (ATM 83.1% + spread 12.7% + bias) — expensive

<3.0%

Total drag 23.00% (spread 12.72% + slippage 10.28%) — high friction

≥5.0

Vega efficiency 25.41 (vega 32.327 / spread 12.72%) — efficient

Sentiment

Bullish or bearish?

4.7
BearishBullish

Analyzes

,
, and flow direction to determine market bias.

Risk ChecksBearish - Moderate signal (Conviction: -10%, Raw: -10%)
|net sentiment| ≥25%

Conviction-weighted: -10% (bearish) — Raw: -10%

≥15%

|OI skew| 17.7% — put-heavy

Same sign, |vol skew| ≥10%

Vol skew +8.0%, OI skew -17.7% — divergent (opposite)

≥2/3 conditions

0-DTE 0%, far-OTM 15%, avg DTE 30

|change| ≥3%

OI change +0.0% (5d) — stable

|weighted flow| ≥20%

ITM: -57%, ATM: +14%, OTM: -17% — strong bearish (ITM/ATM divergent)

Sector Relative≤40% or ≥60%

Sector P/C percentile 26% — very bullish vs sector

Activity

Unusual activity?

5.8
QuietActive

Detects volume surges,

, and unusual options activity that may signal moves.

Risk Checks4/8 checks passed
≥1.5x

Volume 1.8x avg — elevated

≥15%

Vol/OI 19.2% — high turnover

≥2 days

1 day(s) elevated — may be one-day event

≥5%

OI change +12.3% (5d) — building

Sector Relative≥60%

Sector activity percentile 91% — very active vs sector

≥30%

Large trade volume 0% — mostly retail

≥60%

Aggressive execution 20% — patient

≥30

Conviction -10 (bearish) — mixed

Liquidity

Can I trade efficiently?

3.2
IlliquidLiquid

Evaluates

, volume depth, and open interest for trade execution quality.

Risk Checks2/8 checks passed
≤5.0%

Spread 12.7% — wide

≥10,000

OI 23,479 — adequate

≥500

Volume 4,501/day — adequate

≤$0.50

$0.64 to cross — expensive

≥5 strikes

0 liquid strikes — limited options

Sector Relative≤40%

Sector spread percentile 97% — much wider than sector

≥100 contracts

Depth 41.400000000000006 contracts (bid:22.3 ask:19.1) — thin

<1.0%

Avg slippage 10.28% — poor

Timing

Is now a good time?

7.3
RiskyFavorable

Considers earnings proximity,

, and event calendar for optimal entry timing.

Risk Checks6/9 checks passed
|slope| ≥5%

Slope -8.4% — contango

<30 or >70

IV percentile 94% — seller opportunity

≥10pts kink

IV kink -4.0pts — no clear event

<0.5 or >2.0

θ/ν ratio 62.27 — favors income trades

≥3 expirations

4 liquid expirations — flexible

≥60% (safe)

safe window: No earnings detected

<1.2 ratio

Spread ratio 1.00x — stable

≥25% strength + ≥50% consistency

Flow -10% @ 55% consistency — unclear

≥40 composite score

Score 30 (ITM 20% + inst 0%) — retail dominated

Directional Strategy Fit

Option Buyers
Long Calls5.2
bullishIV fair, mixed flow
Long Puts5.4
bearishIV fair, mixed flow
Premium Sellers
Cash-Secured Put4.7
bullishIV fair, mixed flow
Covered Call4.9
bearishIV fair, mixed flow

For educational purposes only. Not investment advice.

The Options Desk tracks the move options price into every US earnings report the week of Aug 31, next to how much each stock has actually moved on its past prints — plus the SPY, QQQ and IWM expected ranges and the gamma walls that box them in.

More on LABU

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