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 2.4% — cheap vs history
IV/HV 0.81x — IV ≤ HV
Sector percentile 4% — below sector median
Front/Back 0.77x — contango
Put/Call IV 1.16x — elevated
ATM IV 15.5% — normal range
Effective IV 17.8% (ATM 15.5% + spread 1.1% + bias) — excellent value
Total drag 2.76% (spread 1.14% + slippage 1.62%) — acceptable
Vega efficiency 1961.64 (vega 223.627 / spread 1.14%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -0% (neutral) — Raw: +0%
|OI skew| 38.3% — put-heavy
Vol skew -2.8%, OI skew -38.3% — weak (same direction)
0-DTE 45%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -11%, ATM: +0%, OTM: +0% — neutral (ITM/ATM divergent)
Sector P/C percentile 87% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 1.0x avg — normal
Vol/OI 62.2% — high turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +14.3% (5d) — building
Sector activity percentile 99% — very active vs sector
Large trade volume 33% — institutional presence
Aggressive execution 89% — highly urgent
Conviction -0 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 1.1% — tight
OI 20,195,071 — deep
Volume 12,558,799/day — active
$0.06 to cross — cheap
55 liquid strikes — good coverage
Sector spread percentile 20% — tighter than sector
Depth 839.6 contracts (bid:397.3 ask:442.3) — deep
Avg slippage 1.62% — fair
Is now a good time?
Considers earnings proximity,
Slope -23.0% — contango
IV percentile 2% — buyer opportunity
IV kink -2.5pts — no clear event
θ/ν ratio 1936.16 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -0% @ 50% consistency — unclear
Score 63 (ITM 20% + inst 33%) — HIGH institutional
For educational purposes only. Not investment advice.