IV is low with 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 2.6% — cheap vs history
IV/HV 1.61x — IV premium over HV
Sector percentile 4% — below sector median
Front/Back 0.86x — contango
Put/Call IV 1.16x — elevated
ATM IV 15.6% — normal range
Effective IV 36.8% (ATM 15.6% + spread 10.6% + bias) — excellent value
Total drag 20.81% (spread 10.61% + slippage 10.20%) — high friction
Vega efficiency 58.22 (vega 61.771 / spread 10.61%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +15% (bullish) — Raw: +8%
|OI skew| 37.8% — put-heavy
Vol skew +45.4%, OI skew -37.8% — divergent (opposite)
0-DTE 5%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -6%, ATM: +71%, OTM: -18% — bullish (ITM/ATM divergent)
Sector P/C percentile 21% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.9x avg — normal
Vol/OI 6.8% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +4.8% (5d) — building
Sector activity percentile 73% — active vs sector
Large trade volume 82% — heavy institutional
Aggressive execution 47% — patient
Conviction +15 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 10.6% — wide
OI 281,611 — deep
Volume 19,268/day — active
$0.53 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 19% — much tighter than sector
Depth 247.7 contracts (bid:112.2 ask:135.5) — adequate
Avg slippage 10.20% — poor
Is now a good time?
Considers earnings proximity,
Slope -14.4% — contango
IV percentile 3% — buyer opportunity
IV kink -1.2pts — no clear event
θ/ν ratio 1849.42 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +15% @ 58% consistency — unclear
Score 112 (ITM 20% + inst 82%) — HIGH institutional
For educational purposes only. Not investment advice.