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 1.6% — cheap vs history
IV/HV 1.44x — IV premium over HV
Sector percentile 2% — below sector median
Front/Back 0.97x — contango
Put/Call IV 1.16x — elevated
ATM IV 12.2% — normal range
Effective IV 58.8% (ATM 12.2% + spread 23.3% + bias) — good value
Total drag 34.01% (spread 23.28% + slippage 10.73%) — high friction
Vega efficiency 1.55 (vega 3.604 / spread 23.28%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: -35% (strong bearish) — Raw: -28%
|OI skew| 7.4% — balanced
Vol skew -8.2%, OI skew -7.4% — weak (same direction)
0-DTE 12%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +40%, ATM: +10%, OTM: -64% — strong bullish (ITM/ATM aligned)
Sector P/C percentile 88% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 1.1x avg — normal
Vol/OI 3.5% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +5.1% (5d) — building
Sector activity percentile 52% — neutral vs sector
Large trade volume 30% — mixed
Aggressive execution 35% — patient
Conviction -35 (bearish) — moderate
Can I trade efficiently?
Evaluates
Spread 23.3% — wide
OI 149,972 — deep
Volume 5,196/day — active
$1.16 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 19% — much tighter than sector
Depth 307.8 contracts (bid:196.9 ask:110.9) — adequate
Avg slippage 10.73% — poor
Is now a good time?
Considers earnings proximity,
Slope -3.1% — flat/unclear
IV percentile 2% — buyer opportunity
IV kink -1.0pts — no clear event
θ/ν ratio 439.49 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -35% @ 68% consistency — moderate (bearish)
Score 60 (ITM 20% + inst 30%) — moderate institutional
For educational purposes only. Not investment advice.