IV is low with unusual activity. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 2.3% — cheap vs history
IV/HV 0.89x — IV ≤ HV
Sector percentile 3% — below sector median
Front/Back 0.69x — contango
Put/Call IV 1.16x — elevated
ATM IV 15.1% — normal range
Effective IV 46.4% (ATM 15.1% + spread 15.7% + bias) — excellent value
Total drag 20.57% (spread 15.66% + slippage 4.91%) — high friction
Vega efficiency 0.26 (vega 0.400 / spread 15.66%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: -12% (bearish) — Raw: -12%
|OI skew| 11.4% — balanced
Vol skew +18.7%, OI skew +11.4% — aligned
0-DTE 25%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -33%, ATM: -4%, OTM: -24% — bearish (ITM/ATM aligned)
Sector P/C percentile 27% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 1.3x avg — normal
Vol/OI 13.2% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +6.9% (5d) — building
Sector activity percentile 86% — very active vs sector
Large trade volume 6% — mostly retail
Aggressive execution 23% — patient
Conviction -12 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 15.7% — wide
OI 17,789 — adequate
Volume 2,343/day — adequate
$0.78 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 20% — much tighter than sector
Depth 168.2 contracts (bid:106.3 ask:61.9) — adequate
Avg slippage 4.91% — poor
Is now a good time?
Considers earnings proximity,
Slope -31.3% — contango
IV percentile 2% — buyer opportunity
IV kink -3.8pts — no clear event
θ/ν ratio 9.76 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -12% @ 56% consistency — unclear
Score 36 (ITM 20% + inst 6%) — retail dominated
For educational purposes only. Not investment advice.