IV is elevated with bullish flow and unusual activity. Conditions favor premium sellers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 75.9% — elevated vs history
IV/HV 1.23x — IV premium over HV
Sector percentile 84% — above sector median
Front/Back 1.01x — flat
Put/Call IV 1.16x — elevated
ATM IV 64.0% — normal range
Effective IV 98.0% (ATM 64.0% + spread 17.0% + bias) — expensive
Total drag 20.99% (spread 16.99% + slippage 4.00%) — high friction
Vega efficiency 0.47 (vega 0.794 / spread 16.99%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +35% (strong bullish) — Raw: +36%
|OI skew| 61.9% — call-heavy
Vol skew +24.1%, OI skew +61.9% — aligned
0-DTE 3%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +47%, ATM: -26%, OTM: -73% — bullish (ITM/ATM divergent)
Sector P/C percentile 26% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 2.7x avg — hot
Vol/OI 10.1% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +0.1% (5d) — stable
Sector activity percentile 81% — very active vs sector
Large trade volume 37% — institutional presence
Aggressive execution 29% — patient
Conviction +35 (bullish) — moderate
Can I trade efficiently?
Evaluates
Spread 17.0% — wide
OI 13,104 — adequate
Volume 1,322/day — adequate
$0.85 to cross — expensive
1 liquid strikes — limited options
Sector spread percentile 87% — much wider than sector
Depth 192.4 contracts (bid:108.7 ask:83.7) — adequate
Avg slippage 4.00% — poor
Is now a good time?
Considers earnings proximity,
Slope +0.5% — flat/unclear
IV percentile 76% — seller opportunity
IV kink 1.6pts — no clear event
θ/ν ratio 1.40 — favors mixed
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +35% @ 68% consistency — moderate (bullish)
Score 67 (ITM 20% + inst 37%) — HIGH institutional
For educational purposes only. Not investment advice.