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 1.19x — IV premium over HV
Sector percentile 11% — below sector median
Front/Back 1.04x — flat
Put/Call IV 1.16x — elevated
ATM IV 18.2% — normal range
Effective IV 20.3% (ATM 18.2% + spread 1.1% + bias) — excellent value
Total drag 2.37% (spread 1.07% + slippage 1.30%) — acceptable
Vega efficiency 1151.84 (vega 123.247 / spread 1.07%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +4% (neutral) — Raw: +3%
|OI skew| 31.9% — put-heavy
Vol skew -6.3%, OI skew -31.9% — weak (same direction)
0-DTE 44%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -29%, ATM: +2%, OTM: +8% — bearish (ITM/ATM divergent)
Sector P/C percentile 88% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 1.4x avg — normal
Vol/OI 82.8% — high turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +6.5% (5d) — building
Sector activity percentile 99% — very active vs sector
Large trade volume 24% — mixed
Aggressive execution 88% — highly urgent
Conviction +4 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 1.1% — tight
OI 19,909,256 — deep
Volume 16,486,316/day — active
$0.05 to cross — cheap
86 liquid strikes — good coverage
Sector spread percentile 25% — tighter than sector
Depth 432.6 contracts (bid:206.3 ask:226.3) — adequate
Avg slippage 1.30% — fair
Is now a good time?
Considers earnings proximity,
Slope +3.9% — flat/unclear
IV percentile 7% — buyer opportunity
IV kink 1.6pts — no clear event
θ/ν ratio 639.91 — favors income trades
5 liquid expirations — flexible
acceptable: No earnings detected; FOMC in 5d
Spread ratio 1.00x — stable
Flow +4% @ 52% consistency — unclear
Score 54 (ITM 20% + inst 24%) — moderate institutional
For educational purposes only. Not investment advice.