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 5.8% — cheap vs history
IV/HV 1.34x — IV premium over HV
Sector percentile 9% — below sector median
Front/Back 1.09x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 20.0% — normal range
Effective IV 40.7% (ATM 20.0% + spread 10.4% + bias) — excellent value
Total drag 16.70% (spread 10.36% + slippage 6.34%) — high friction
Vega efficiency 59.09 (vega 61.222 / spread 10.36%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +18% (bullish) — Raw: +18%
|OI skew| 26.3% — put-heavy
Vol skew +24.8%, OI skew -26.3% — divergent (opposite)
0-DTE 41%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +30%, ATM: +30%, OTM: +6% — strong bullish (ITM/ATM aligned)
Sector P/C percentile 25% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.2x avg — normal
Vol/OI 1.0% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +3.2% (5d) — building
Sector activity percentile 23% — below sector avg
Large trade volume 18% — mixed
Aggressive execution 16% — patient
Conviction +18 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 10.4% — wide
OI 258,948 — deep
Volume 2,703/day — adequate
$0.52 to cross — expensive
1 liquid strikes — limited options
Sector spread percentile 25% — tighter than sector
Depth 653.5 contracts (bid:297.1 ask:356.4) — deep
Avg slippage 6.34% — poor
Is now a good time?
Considers earnings proximity,
Slope +9.2% — backwardation
IV percentile 6% — buyer opportunity
IV kink 2.0pts — no clear event
θ/ν ratio 1849.62 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +18% @ 59% consistency — unclear
Score 48 (ITM 20% + inst 18%) — moderate institutional
For educational purposes only. Not investment advice.