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 1.1% — cheap vs history
IV/HV 0.89x — IV ≤ HV
Sector percentile 1% — below sector median
Front/Back 0.80x — contango
Put/Call IV 1.16x — elevated
ATM IV 10.5% — normal range
Effective IV 44.7% (ATM 10.5% + spread 17.1% + bias) — excellent value
Total drag 20.28% (spread 17.08% + slippage 3.20%) — high friction
Vega efficiency 0.00 (vega 0.000 / spread 17.08%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +21% (bullish) — Raw: +22%
|OI skew| 5.1% — balanced
Vol skew +50.0%, OI skew +5.1% — aligned
0-DTE 31%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +0%, ATM: +16%, OTM: +33% — neutral (ITM/ATM divergent)
Sector P/C percentile 17% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.5x avg — normal
Vol/OI 2.0% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +2.6% (5d) — building
Sector activity percentile 37% — below sector avg
Large trade volume 0% — mostly retail
Aggressive execution 10% — patient
Conviction +21 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 17.1% — wide
OI 4,197 — thin
Volume 84/day — thin
$0.85 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 18% — much tighter than sector
Depth 22.099999999999998 contracts (bid:18.4 ask:3.7) — thin
Avg slippage 3.20% — poor
Is now a good time?
Considers earnings proximity,
Slope -19.8% — contango
IV percentile 1% — buyer opportunity
IV kink -1.5pts — no clear event
θ/ν ratio 1.00 — favors mixed
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +21% @ 60% consistency — unclear
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.