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 21.3% — cheap vs history
IV/HV 1.70x — IV premium over HV
Sector percentile 32% — below sector median
Front/Back 0.90x — contango
Put/Call IV 1.16x — elevated
ATM IV 28.3% — normal range
Effective IV 109.9% (ATM 28.3% + spread 40.8% + bias) — expensive
Total drag 55.76% (spread 40.78% + slippage 14.98%) — high friction
Vega efficiency 0.38 (vega 1.555 / spread 40.78%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: -79% (strong bearish) — Raw: -74%
|OI skew| 34.0% — call-heavy
Vol skew +85.1%, OI skew +34.0% — aligned
0-DTE 4%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -100%, ATM: +50%, OTM: -96% — strong bearish (ITM/ATM divergent)
Sector P/C percentile 6% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.6x avg — normal
Vol/OI 2.3% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change -1.0% (5d) — stable
Sector activity percentile 41% — neutral vs sector
Large trade volume 75% — heavy institutional
Aggressive execution 58% — patient
Conviction -79 (bearish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 40.8% — wide
OI 5,795 — thin
Volume 134/day — thin
$2.04 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 44% — neutral vs sector
Depth 104.0 contracts (bid:42.4 ask:61.6) — adequate
Avg slippage 14.98% — poor
Is now a good time?
Considers earnings proximity,
Slope -10.1% — contango
IV percentile 21% — buyer opportunity
IV kink -2.1pts — no clear event
θ/ν ratio 3.69 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -79% @ 90% consistency — STRONG directional (bearish)
Score 105 (ITM 20% + inst 75%) — HIGH institutional
For educational purposes only. Not investment advice.