LIILennox International Inc.
Options Analysis Report•AIR-COND & WARM AIR HEATG EQUIP & COMM & INDL REFRIG EQUIP
Market Cap $17.9B|NYSE
● 2026-05-15$514.38
BEARISH
Analysis: 2026-05-14 EOD data
1Y -13.4%YTD +3.1%7D -1.3%
Options Vol
23
30D
Implied Move
±8.6%
IV Rank
10%
LII Options Overview
bearish flow. Conditions favor premium sellers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
4.8
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks4/9 checks passed
IV Rank
≤35%IV Rank 68.1% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 1.29x — IV premium over HV
Sector Relative≤50%
Sector percentile 75% — above sector median
Term Structure
<1.1xFront/Back 0.97x — contango
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 41.8% — normal range
Spread-Adjusted Value
<80%Effective IV 135.8% (ATM 41.8% + spread 47.0% + bias) — expensive
Execution Efficiency
<3.0%Total drag 54.96% (spread 46.99% + slippage 7.97%) — high friction
Vega Efficiency
≥5.0Vega efficiency 18.27 (vega 85.853 / spread 46.99%) — efficient
Sentiment
Bullish or bearish?
2.6
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksVery Bearish - Moderate signal (Conviction: -87%, Raw: -83%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: -87% (strong bearish) — Raw: -83%
OI Skew Magnitude
≥15%|OI skew| 12.0% — balanced
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +4.3%, OI skew -12.0% — divergent (opposite)
Conviction Quality
≥2/3 conditions0-DTE 52%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: +0%, ATM: +100%, OTM: -100% — strong bullish (ITM/ATM divergent)
Sector Relative≤40% or ≥60%
Sector P/C percentile 57% — bearish vs sector
Activity
Unusual activity?
2.8
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks1/9 checks passed
Volume Surge
≥1.5xVolume 0.4x avg — normal
Turnover Rate
≥15%Vol/OI 1.3% — normal turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change +3.3% (5d) — building
Sector Relative≥60%
Sector activity percentile 19% — quiet vs sector
Trade Quality
≥30%Large trade volume 0% — mostly retail
Execution Urgency
≥60%Aggressive execution 40% — patient
Flow Conviction
≥30Conviction -87 (bearish) — strong conviction
Liquidity
Can I trade efficiently?
2.0
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks0/8 checks passed
Tradeable Spread
≤5.0%Spread 47.0% — wide
Adequate OI
≥10,000OI 1,784 — thin
Active Volume
≥500Volume 23/day — thin
Reasonable Cost
≤$0.50$2.35 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 76% — wider than sector
Order Book Depth
≥100 contractsDepth 13.8 contracts (bid:9.8 ask:4.0) — thin
Execution Quality
<1.0%Avg slippage 7.97% — poor
Timing
Is now a good time?
6.9
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks5/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope -2.6% — flat/unclear
IV Percentile Clarity
<30 or >70IV percentile 68% — neutral
Event Detection
≥10pts kinkIV kink -0.4pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 332.76 — favors income trades
Expiration Distribution
≥3 expirations3 liquid expirations — flexible
Event Risk
≥60% (safe)safe window: No events detected
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow -87% @ 100% consistency — STRONG directional (bearish)
Smart Money Timing
≥40 composite scoreScore 30 (ITM 20% + inst 0%) — retail dominated
Directional Strategy Fit
Option Buyers
Long Calls3.9
bullishIV fair, bearish flow
Long Puts5.6
bearishIV fair, bearish flow
Premium Sellers
Cash-Secured Put3.9
bullishIV fair, bearish flow
Covered Call5.5
bearishIV fair, bearish flow
For educational purposes only. Not investment advice.