WENThe Wendy's Company
Options Analysis Report•RETAIL-EATING & DRINKING PLACES
Market Cap $1.5B|NASDAQ
● 2026-05-15$8.11
BULLISH
Analysis: 2026-05-14 EOD data
1Y -32.2%YTD -0.7%7D +11.1%
Options Vol
39,523
30D
Implied Move
±18.1%
IV Rank
37%
WEN Options Overview
IV is elevated with bullish flow and unusual activity. No clear edge detected.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
4.0
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks3/9 checks passed
IV Rank
≤35%IV Rank 70.5% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 0.78x — IV ≤ HV
Sector Relative≤50%
Sector percentile 71% — above sector median
Term Structure
<1.1xFront/Back 1.54x — backwardation
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 58.1% — normal range
Spread-Adjusted Value
<80%Effective IV 106.7% (ATM 58.1% + spread 24.3% + bias) — expensive
Execution Efficiency
<3.0%Total drag 33.78% (spread 24.31% + slippage 9.47%) — high friction
Vega Efficiency
≥5.0Vega efficiency 0.27 (vega 0.646 / spread 24.31%) — spread drag
Sentiment
Bullish or bearish?
7.3
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksBullish - Moderate signal (Conviction: +23%, Raw: +18%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +23% (bullish) — Raw: +18%
OI Skew Magnitude
≥15%|OI skew| 9.1% — balanced
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +62.6%, OI skew +9.1% — aligned
Conviction Quality
≥2/3 conditions0-DTE 27%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: -12%, ATM: -5%, OTM: +46% — neutral (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 29% — very bullish vs sector
Activity
Unusual activity?
5.8
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks3/9 checks passed
Volume Surge
≥1.5xVolume 1.5x avg — normal
Turnover Rate
≥15%Vol/OI 8.6% — 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 +57.1% (5d) — building
Sector Relative≥60%
Sector activity percentile 82% — very active vs sector
Trade Quality
≥30%Large trade volume 57% — heavy institutional
Execution Urgency
≥60%Aggressive execution 45% — patient
Flow Conviction
≥30Conviction +23 (bullish) — mixed
Liquidity
Can I trade efficiently?
3.8
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks3/8 checks passed
Tradeable Spread
≤5.0%Spread 24.3% — wide
Adequate OI
≥10,000OI 460,338 — deep
Active Volume
≥500Volume 39,523/day — active
Reasonable Cost
≤$0.50$1.22 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 84% — much wider than sector
Order Book Depth
≥100 contractsDepth 779.9000000000001 contracts (bid:532.6 ask:247.3) — deep
Execution Quality
<1.0%Avg slippage 9.47% — poor
Timing
Is now a good time?
7.4
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks8/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +53.7% — backwardation
IV Percentile Clarity
<30 or >70IV percentile 70% — seller opportunity
Event Detection
≥10pts kinkIV kink 13.5pts — event priced
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 37.55 — favors income trades
Expiration Distribution
≥3 expirations5 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 +23% @ 62% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 87 (ITM 20% + inst 57%) — HIGH institutional
Directional Strategy Fit
Option Buyers
Long Calls5.6
bullishIV expensive, bullish flow
Long Puts4.0
bearishIV expensive, bullish flow
Premium Sellers
Cash-Secured Put6.2
bullishIV rich premium, bullish flow
Covered Call4.6
bearishIV rich premium, bullish flow
For educational purposes only. Not investment advice.