IV is low with bullish flow. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 1.4% — cheap vs history
IV/HV 1.69x — IV premium over HV
Sector percentile 2% — below sector median
Front/Back 0.71x — contango
Put/Call IV 1.16x — elevated
ATM IV 11.4% — normal range
Effective IV 100.1% (ATM 11.4% + spread 44.3% + bias) — expensive
Total drag 58.77% (spread 44.33% + slippage 14.44%) — high friction
Vega efficiency 0.09 (vega 0.392 / spread 44.33%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: -12% (bearish) — Raw: -19%
|OI skew| 73.7% — call-heavy
Vol skew +27.5%, OI skew +73.7% — aligned
0-DTE 7%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -43%, ATM: +37%, OTM: -60% — bearish (ITM/ATM divergent)
Sector P/C percentile 25% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.2x avg — normal
Vol/OI 0.7% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +0.5% (5d) — stable
Sector activity percentile 16% — quiet vs sector
Large trade volume 29% — mixed
Aggressive execution 68% — urgent
Conviction -12 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 44.3% — wide
OI 226,017 — deep
Volume 1,612/day — adequate
$2.22 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 19% — much tighter than sector
Depth 419.0 contracts (bid:165.4 ask:253.6) — adequate
Avg slippage 14.44% — poor
Is now a good time?
Considers earnings proximity,
Slope -28.7% — contango
IV percentile 1% — buyer opportunity
IV kink -1.2pts — no clear event
θ/ν ratio 6.34 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -12% @ 56% consistency — unclear
Score 59 (ITM 20% + inst 29%) — moderate institutional
For educational purposes only. Not investment advice.