WSOWatsco, Inc.
Options Analysis Report•WHOLESALE-HARDWARE & PLUMBING & HEATING EQUIPMENT & SUPPLIES
Market Cap $16.9B|NYSE
● 2026-05-15$416.08
BULLISH
Analysis: 2026-05-14 EOD data
1Y -13.1%YTD +19.8%7D -1.1%
Options Vol
20
30D
Implied Move
±8.6%
IV Rank
13%
WSO Options Overview
bullish flow. Conditions favor option buyers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
6.2
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks4/9 checks passed
IV Rank
≤35%IV Rank 43.7% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 1.18x — IV premium over HV
Sector Relative≤50%
Sector percentile 33% — below sector median
Term Structure
<1.1xFront/Back 0.94x — contango
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 39.7% — normal range
Spread-Adjusted Value
<80%Effective IV 108.5% (ATM 39.7% + spread 34.4% + bias) — expensive
Execution Efficiency
<3.0%Total drag 38.13% (spread 34.40% + slippage 3.73%) — high friction
Vega Efficiency
≥5.0Vega efficiency 1.21 (vega 4.158 / spread 34.40%) — spread drag
Sentiment
Bullish or bearish?
6.9
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksBullish - Moderate signal (Conviction: +10%, Raw: +20%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +10% (bullish) — Raw: +20%
OI Skew Magnitude
≥15%|OI skew| 36.3% — call-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +90.0%, OI skew +36.3% — aligned
Conviction Quality
≥2/3 conditions0-DTE 50%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: +0%, ATM: +0%, OTM: +60% — neutral (ITM/ATM divergent)
Sector Relative≤40% or ≥60%
Sector P/C percentile 8% — very bullish vs sector
Activity
Unusual activity?
1.8
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks0/9 checks passed
Volume Surge
≥1.5xVolume 0.1x avg — normal
Turnover Rate
≥15%Vol/OI 0.2% — 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 -3.9% (5d) — unwinding
Sector Relative≥60%
Sector activity percentile 9% — quiet vs sector
Trade Quality
≥30%Large trade volume 0% — mostly retail
Execution Urgency
≥60%Aggressive execution 8% — patient
Flow Conviction
≥30Conviction +10 (bullish) — mixed
Liquidity
Can I trade efficiently?
2.2
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks0/8 checks passed
Tradeable Spread
≤5.0%Spread 34.4% — wide
Adequate OI
≥10,000OI 8,760 — thin
Active Volume
≥500Volume 20/day — thin
Reasonable Cost
≤$0.50$1.72 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 59% — neutral vs sector
Order Book Depth
≥100 contractsDepth 14.8 contracts (bid:7.6 ask:7.2) — thin
Execution Quality
<1.0%Avg slippage 3.73% — poor
Timing
Is now a good time?
6.8
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks5/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope -6.4% — contango
IV Percentile Clarity
<30 or >70IV percentile 44% — neutral
Event Detection
≥10pts kinkIV kink -1.4pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 7.95 — 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 +10% @ 54% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 30 (ITM 20% + inst 0%) — retail dominated
Directional Strategy Fit
Option Buyers
Long Calls5.9
bullishIV cheap, bullish flow
Long Puts4.6
bearishIV cheap, bullish flow
Premium Sellers
Cash-Secured Put5.0
bullishIV too cheap, bullish flow
Covered Call3.7
bearishIV too cheap, bullish flow
For educational purposes only. Not investment advice.