IV is low with bullish flow and 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 1.2% — cheap vs history
IV/HV 1.31x — IV premium over HV
Sector percentile 2% — below sector median
Front/Back 0.90x — contango
Put/Call IV 1.16x — elevated
ATM IV 10.5% — normal range
Effective IV 15.9% (ATM 10.5% + spread 2.7% + bias) — excellent value
Total drag 5.67% (spread 2.72% + slippage 2.95%) — high friction
Vega efficiency 105.27 (vega 28.633 / spread 2.72%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -15% (bearish) — Raw: -15%
|OI skew| 20.5% — call-heavy
Vol skew +29.0%, OI skew +20.5% — aligned
0-DTE 18%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +5%, ATM: -30%, OTM: +10% — neutral (ITM/ATM divergent)
Sector P/C percentile 27% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 1.4x avg — normal
Vol/OI 8.1% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +9.1% (5d) — building
Sector activity percentile 78% — active vs sector
Large trade volume 58% — heavy institutional
Aggressive execution 61% — urgent
Conviction -15 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 2.7% — acceptable
OI 8,707,399 — deep
Volume 707,580/day — active
$0.14 to cross — cheap
3 liquid strikes — limited options
Sector spread percentile 17% — much tighter than sector
Depth 790.1 contracts (bid:384.1 ask:406.0) — deep
Avg slippage 2.95% — poor
Is now a good time?
Considers earnings proximity,
Slope -9.8% — contango
IV percentile 1% — buyer opportunity
IV kink -0.3pts — no clear event
θ/ν ratio 3449.77 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -15% @ 58% consistency — unclear
Score 88 (ITM 20% + inst 58%) — HIGH institutional
For educational purposes only. Not investment advice.