IV is low. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 2.6% — cheap vs history
IV/HV 1.08x — IV premium over HV
Sector percentile 0% — below sector median
Front/Back 0.95x — contango
Put/Call IV 1.16x — elevated
ATM IV 21.7% — normal range
Effective IV 35.6% (ATM 21.7% + spread 7.0% + bias) — excellent value
Total drag 14.12% (spread 6.96% + slippage 7.16%) — high friction
Vega efficiency 108.04 (vega 75.195 / spread 6.96%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -8% (neutral) — Raw: -7%
|OI skew| 14.7% — balanced
Vol skew -1.5%, OI skew +14.7% — divergent (opposite)
0-DTE 47%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +3%, ATM: -15%, OTM: -8% — neutral (ITM/ATM divergent)
Sector P/C percentile 66% — bearish vs sector
Unusual activity?
Detects volume surges,
Volume 1.0x avg — normal
Vol/OI 11.1% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +16.9% (5d) — building
Sector activity percentile 78% — active vs sector
Large trade volume 25% — mixed
Aggressive execution 38% — patient
Conviction -8 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 7.0% — wide
OI 250,971 — deep
Volume 27,914/day — active
$0.35 to cross — cheap
1 liquid strikes — limited options
Sector spread percentile 2% — much tighter than sector
Depth 108.0 contracts (bid:49.2 ask:58.8) — adequate
Avg slippage 7.16% — poor
Is now a good time?
Considers earnings proximity,
Slope -5.4% — contango
IV percentile 3% — buyer opportunity
IV kink 0.5pts — no clear event
θ/ν ratio 1337.99 — favors income trades
5 liquid expirations — flexible
safe window: No events detected
Spread ratio 1.00x — stable
Flow -8% @ 54% consistency — unclear
Score 55 (ITM 20% + inst 25%) — moderate institutional
For educational purposes only. Not investment advice.