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 3.6% — cheap vs history
IV/HV 1.29x — IV premium over HV
Sector percentile 5% — below sector median
Front/Back 0.85x — contango
Put/Call IV 1.16x — elevated
ATM IV 17.3% — normal range
Effective IV 63.6% (ATM 17.3% + spread 23.1% + bias) — good value
Total drag 28.29% (spread 23.15% + slippage 5.14%) — high friction
Vega efficiency 8.99 (vega 20.806 / spread 23.15%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -15% (bearish) — Raw: -15%
|OI skew| 56.7% — call-heavy
Vol skew -1.8%, OI skew +56.7% — divergent (opposite)
0-DTE 9%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +0%, ATM: +0%, OTM: -26% — neutral (ITM/ATM divergent)
Sector P/C percentile 86% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.5x avg — normal
Vol/OI 1.0% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +1.1% (5d) — stable
Sector activity percentile 22% — below sector avg
Large trade volume 0% — mostly retail
Aggressive execution 8% — patient
Conviction -15 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 23.1% — wide
OI 5,621 — thin
Volume 55/day — thin
$1.16 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 22% — tighter than sector
Depth 36.6 contracts (bid:19.8 ask:16.8) — thin
Avg slippage 5.14% — poor
Is now a good time?
Considers earnings proximity,
Slope -15.2% — contango
IV percentile 4% — buyer opportunity
IV kink -1.7pts — no clear event
θ/ν ratio 332.36 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -15% @ 57% consistency — unclear
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.