IV is low with bullish flow. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 0.6% — cheap vs history
IV/HV 1.59x — IV premium over HV
Sector percentile 1% — below sector median
Front/Back 0.82x — contango
Put/Call IV 1.16x — elevated
ATM IV 8.2% — normal range
Effective IV 33.0% (ATM 8.2% + spread 12.4% + bias) — excellent value
Total drag 18.77% (spread 12.41% + slippage 6.36%) — high friction
Vega efficiency 24.04 (vega 29.830 / spread 12.41%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +58% (strong bullish) — Raw: +36%
|OI skew| 26.8% — put-heavy
Vol skew +82.4%, OI skew -26.8% — divergent (opposite)
0-DTE 23%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +0%, ATM: +36%, OTM: +85% — bullish (ITM/ATM divergent)
Sector P/C percentile 8% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.7x avg — normal
Vol/OI 2.2% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +11.5% (5d) — building
Sector activity percentile 41% — neutral vs sector
Large trade volume 86% — heavy institutional
Aggressive execution 63% — urgent
Conviction +58 (bullish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 12.4% — wide
OI 1,606,666 — deep
Volume 35,277/day — active
$0.62 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 17% — much tighter than sector
Depth 211.39999999999998 contracts (bid:104.8 ask:106.6) — adequate
Avg slippage 6.36% — poor
Is now a good time?
Considers earnings proximity,
Slope -18.5% — contango
IV percentile 1% — buyer opportunity
IV kink -0.1pts — no clear event
θ/ν ratio 3351.69 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +58% @ 79% consistency — STRONG directional (bullish)
Score 116 (ITM 20% + inst 86%) — HIGH institutional
For educational purposes only. Not investment advice.