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 1.2% — cheap vs history
IV/HV 2.28x — IV premium over HV
Sector percentile 2% — below sector median
Front/Back 0.85x — contango
Put/Call IV 1.16x — elevated
ATM IV 10.9% — normal range
Effective IV 61.1% (ATM 10.9% + spread 25.1% + bias) — good value
Total drag 34.30% (spread 25.10% + slippage 9.20%) — high friction
Vega efficiency 5.59 (vega 14.027 / spread 25.10%) — acceptable
Bullish or bearish?
Analyzes
Conviction-weighted: -54% (strong bearish) — Raw: -44%
|OI skew| 28.7% — call-heavy
Vol skew -57.6%, OI skew +28.7% — divergent (opposite)
0-DTE 3%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -100%, ATM: -41%, OTM: +0% — strong bearish (ITM/ATM aligned)
Sector P/C percentile 95% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 1.6x avg — elevated
Vol/OI 3.1% — normal turnover
Top 3 strikes = 50% — dispersed
2 day(s) elevated — sustained
OI change +3.1% (5d) — building
Sector activity percentile 49% — neutral vs sector
Large trade volume 0% — mostly retail
Aggressive execution 27% — patient
Conviction -54 (bearish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 25.1% — wide
OI 6,517 — thin
Volume 203/day — thin
$1.25 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 19% — much tighter than sector
Depth 33.5 contracts (bid:17.3 ask:16.2) — thin
Avg slippage 9.20% — poor
Is now a good time?
Considers earnings proximity,
Slope -15.1% — contango
IV percentile 1% — buyer opportunity
IV kink -0.9pts — no clear event
θ/ν ratio 947.79 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -54% @ 77% consistency — STRONG directional (bearish)
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.