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 15.6% — cheap vs history
IV/HV 1.28x — IV premium over HV
Sector percentile 16% — below sector median
Front/Back 1.10x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 25.9% — normal range
Effective IV 144.0% (ATM 25.9% + spread 59.0% + bias) — expensive
Total drag 72.74% (spread 59.05% + slippage 13.69%) — high friction
Vega efficiency 2.49 (vega 14.691 / spread 59.05%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +11% (bullish) — Raw: +14%
|OI skew| 17.6% — call-heavy
Vol skew -83.5%, OI skew +17.6% — divergent (opposite)
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -100%, ATM: -33%, OTM: +24% — strong bearish (ITM/ATM aligned)
Sector P/C percentile 98% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.8x avg — normal
Vol/OI 27.2% — high turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +13.8% (5d) — building
Sector activity percentile 96% — very active vs sector
Large trade volume 0% — mostly retail
Aggressive execution 11% — patient
Conviction +11 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 59.0% — wide
OI 313 — thin
Volume 85/day — thin
$2.95 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 45% — neutral vs sector
Depth 205.9 contracts (bid:70.4 ask:135.5) — adequate
Avg slippage 13.69% — poor
Is now a good time?
Considers earnings proximity,
Slope +10.3% — backwardation
IV percentile 16% — buyer opportunity
IV kink 1.7pts — no clear event
θ/ν ratio 2260.20 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +11% @ 56% consistency — unclear
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.