VELVelocity Financial, Inc.
Options Analysis Report•FINANCE SERVICES
Market Cap $679M|NYSE
● 2026-05-15$17.30
BEARISH
Analysis: 2026-05-14 EOD data
1Y +4.8%YTD -11.5%7D -5.2%
Options Vol
2,366
30D
Implied Move
±8.6%
IV Rank
35%
VEL Options Overview
IV is elevated with bearish flow and unusual activity. Conditions favor premium sellers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
2.2
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks2/9 checks passed
IV Rank
≤35%IV Rank 84.2% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 1.94x — IV premium over HV
Sector Relative≤50%
Sector percentile 89% — above sector median
Term Structure
<1.1xFront/Back 1.49x — backwardation
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 78.1% — normal range
Spread-Adjusted Value
<80%Effective IV 233.3% (ATM 78.1% + spread 77.6% + bias) — expensive
Execution Efficiency
<3.0%Total drag 91.45% (spread 77.62% + slippage 13.83%) — high friction
Vega Efficiency
≥5.0Vega efficiency 0.67 (vega 5.222 / spread 77.62%) — spread drag
Sentiment
Bullish or bearish?
3.6
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksNeutral - Moderate signal (Conviction: +3%, Raw: +10%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +3% (neutral) — Raw: +10%
OI Skew Magnitude
≥15%|OI skew| 68.0% — put-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew -99.7%, OI skew -68.0% — aligned
Conviction Quality
≥2/3 conditions0-DTE 0%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: +11%, ATM: +0%, OTM: -100% — neutral (ITM/ATM divergent)
Sector Relative≤40% or ≥60%
Sector P/C percentile 100% — very bearish vs sector
Activity
Unusual activity?
4.5
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks2/9 checks passed
Volume Surge
≥1.5xVolume 1.2x avg — normal
Turnover Rate
≥15%Vol/OI 9.3% — normal turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change +1.6% (5d) — stable
Sector Relative≥60%
Sector activity percentile 81% — very active vs sector
Trade Quality
≥30%Large trade volume 96% — heavy institutional
Execution Urgency
≥60%Aggressive execution 41% — patient
Flow Conviction
≥30Conviction +3 (bullish) — mixed
Liquidity
Can I trade efficiently?
2.9
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks3/8 checks passed
Tradeable Spread
≤5.0%Spread 77.6% — wide
Adequate OI
≥10,000OI 25,342 — adequate
Active Volume
≥500Volume 2,366/day — adequate
Reasonable Cost
≤$0.50$3.88 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 91% — much wider than sector
Order Book Depth
≥100 contractsDepth 621.6 contracts (bid:561.4 ask:60.2) — deep
Execution Quality
<1.0%Avg slippage 13.83% — poor
Timing
Is now a good time?
8.0
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks8/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +48.7% — backwardation
IV Percentile Clarity
<30 or >70IV percentile 84% — seller opportunity
Event Detection
≥10pts kinkIV kink 17.4pts — event priced
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 842.21 — favors income trades
Expiration Distribution
≥3 expirations3 liquid expirations — flexible
Event Risk
≥60% (safe)safe window: No earnings detected
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow +3% @ 51% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 126 (ITM 20% + inst 96%) — HIGH institutional
Directional Strategy Fit
Option Buyers
Long Calls3.7
bullishIV expensive, bearish flow
Long Puts4.7
bearishIV expensive, bearish flow
Premium Sellers
Cash-Secured Put5.4
bullishIV rich premium, bearish flow
Covered Call6.7
bearishIV rich premium, bearish flow
For educational purposes only. Not investment advice.