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 6.7% — cheap vs history
IV/HV 0.88x — IV ≤ HV
Sector percentile 10% — below sector median
Front/Back 0.81x — contango
Put/Call IV 1.16x — elevated
ATM IV 20.7% — normal range
Effective IV 23.7% (ATM 20.7% + spread 1.5% + bias) — excellent value
Total drag 2.92% (spread 1.48% + slippage 1.44%) — acceptable
Vega efficiency 0.00 (vega 0.000 / spread 1.48%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +2% (neutral) — Raw: +2%
|OI skew| 19.9% — put-heavy
Vol skew -2.1%, OI skew -19.9% — weak (same direction)
0-DTE 47%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +49%, ATM: +0%, OTM: +4% — strong bullish (ITM/ATM aligned)
Sector P/C percentile 86% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 1.2x avg — normal
Vol/OI 71.5% — high turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +19.3% (5d) — building
Sector activity percentile 99% — very active vs sector
Large trade volume 32% — institutional presence
Aggressive execution 85% — highly urgent
Conviction +2 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 1.5% — tight
OI 11,208,238 — deep
Volume 8,017,629/day — active
$0.07 to cross — cheap
43 liquid strikes — good coverage
Sector spread percentile 26% — tighter than sector
Depth 300.29999999999995 contracts (bid:144.2 ask:156.1) — adequate
Avg slippage 1.44% — fair
Is now a good time?
Considers earnings proximity,
Slope -19.5% — contango
IV percentile 7% — buyer opportunity
IV kink -2.6pts — no clear event
θ/ν ratio 1.00 — favors mixed
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +2% @ 51% consistency — unclear
Score 62 (ITM 20% + inst 32%) — HIGH institutional
For educational purposes only. Not investment advice.