IV is low with bullish flow and 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 5.5% — cheap vs history
IV/HV 1.44x — IV premium over HV
Sector percentile 9% — below sector median
Front/Back 1.07x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 19.7% — normal range
Effective IV 87.4% (ATM 19.7% + spread 33.9% + bias) — expensive
Total drag 39.95% (spread 33.86% + slippage 6.09%) — high friction
Vega efficiency 1.71 (vega 5.773 / spread 33.86%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: -1% (neutral) — Raw: +5%
|OI skew| 42.3% — call-heavy
Vol skew +64.1%, OI skew +42.3% — aligned
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +0%, ATM: +0%, OTM: +10% — neutral (ITM/ATM divergent)
Sector P/C percentile 13% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 5.1x avg — hot
Vol/OI 10.3% — normal turnover
Top 3 strikes = 50% — dispersed
3 day(s) elevated — sustained
OI change +2.6% (5d) — building
Sector activity percentile 81% — very active vs sector
Large trade volume 69% — heavy institutional
Aggressive execution 10% — patient
Conviction -1 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 33.9% — wide
OI 2,480 — thin
Volume 256/day — thin
$1.69 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 24% — tighter than sector
Depth 54.0 contracts (bid:20.3 ask:33.7) — thin
Avg slippage 6.09% — poor
Is now a good time?
Considers earnings proximity,
Slope +7.0% — backwardation
IV percentile 6% — buyer opportunity
IV kink 1.1pts — no clear event
θ/ν ratio 354.18 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -1% @ 51% consistency — unclear
Score 99 (ITM 20% + inst 69%) — HIGH institutional
For educational purposes only. Not investment advice.