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 16.4% — cheap vs history
IV/HV 0.90x — IV ≤ HV
Sector percentile 23% — below sector median
Front/Back 0.97x — contango
Put/Call IV 1.16x — elevated
ATM IV 26.7% — normal range
Effective IV 59.1% (ATM 26.7% + spread 16.2% + bias) — good value
Total drag 21.56% (spread 16.21% + slippage 5.35%) — high friction
Vega efficiency 30.76 (vega 49.864 / spread 16.21%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -2% (neutral) — Raw: -7%
|OI skew| 6.5% — balanced
Vol skew -7.2%, OI skew -6.5% — weak (same direction)
0-DTE 9%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +86%, ATM: -33%, OTM: -18% — strong bullish (ITM/ATM divergent)
Sector P/C percentile 74% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.9x avg — normal
Vol/OI 2.9% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +2.7% (5d) — building
Sector activity percentile 47% — neutral vs sector
Large trade volume 41% — institutional presence
Aggressive execution 43% — patient
Conviction -2 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 16.2% — wide
OI 91,859 — deep
Volume 2,659/day — adequate
$0.81 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 26% — tighter than sector
Depth 104.7 contracts (bid:56.6 ask:48.1) — adequate
Avg slippage 5.35% — poor
Is now a good time?
Considers earnings proximity,
Slope -3.0% — flat/unclear
IV percentile 16% — buyer opportunity
IV kink 1.2pts — no clear event
θ/ν ratio 3895.62 — favors income trades
3 liquid expirations — flexible
safe window: No events detected
Spread ratio 1.00x — stable
Flow -2% @ 51% consistency — unclear
Score 71 (ITM 20% + inst 41%) — HIGH institutional
For educational purposes only. Not investment advice.