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 10.4% — cheap vs history
IV/HV 1.64x — IV premium over HV
Sector percentile 16% — below sector median
Front/Back 0.97x — contango
Put/Call IV 1.16x — elevated
ATM IV 23.4% — normal range
Effective IV 62.9% (ATM 23.4% + spread 19.8% + bias) — good value
Total drag 25.71% (spread 19.76% + slippage 5.95%) — high friction
Vega efficiency 10.53 (vega 20.813 / spread 19.76%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +22% (bullish) — Raw: +28%
|OI skew| 20.5% — put-heavy
Vol skew +28.7%, OI skew -20.5% — divergent (opposite)
0-DTE 22%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -16%, ATM: +6%, OTM: +65% — neutral (ITM/ATM divergent)
Sector P/C percentile 27% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 1.5x avg — normal
Vol/OI 2.9% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +5.0% (5d) — building
Sector activity percentile 48% — neutral vs sector
Large trade volume 0% — mostly retail
Aggressive execution 40% — patient
Conviction +22 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 19.8% — wide
OI 72,281 — deep
Volume 2,095/day — adequate
$0.99 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 29% — tighter than sector
Depth 173.4 contracts (bid:115.9 ask:57.5) — adequate
Avg slippage 5.95% — poor
Is now a good time?
Considers earnings proximity,
Slope -2.9% — flat/unclear
IV percentile 10% — buyer opportunity
IV kink 0.4pts — no clear event
θ/ν ratio 937.53 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +22% @ 61% consistency — unclear
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.