AInvestOption Pilot Program
Options/XLB
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XLBState Street Materials Select Sector SPDR ETF

Options Analysis Report
AUM $8.9B|ARCX
● 2026-08-28$53.23
BULLISH
Analysis: 2026-08-27 EOD data
1Y +15.5%YTD +15.4%7D -0.6%
3,687
30D
±7.5%
13%

XLB Options Overview

IV is low with bullish flow. No clear edge detected.

REWARDS

RISK ANALYSIS

5.2VALUESENTIMENTACTIVITYLIQUIDITYTIMING

Snowflake Analysis

Favorable conditions for option buyers

Learn
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XLB Gamma Walls

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Value

Is IV priced right?

7.1
ExpensiveCheap

Measures whether options are cheap, fair, or rich relative to historical and peer

levels.

Risk Checks6/9 checks passed
≤35%

IV Rank 29.0% — cheap vs history

<1.05x

IV/HV 1.29x — IV premium over HV

Sector Relative≤50%

Sector percentile 48% — below sector median

<1.1x

Front/Back 0.86x — contango

<1.25x

Put/Call IV 1.16x — elevated

<80%

ATM IV 23.5% — normal range

<80%

Effective IV 57.5% (ATM 23.5% + spread 17.0% + bias) — good value

<3.0%

Total drag 23.96% (spread 17.02% + slippage 6.94%) — high friction

≥5.0

Vega efficiency 2.13 (vega 3.623 / spread 17.02%) — spread drag

Sentiment

Bullish or bearish?

6.8
BearishBullish

Analyzes

,
, and flow direction to determine market bias.

Risk ChecksNeutral - Moderate signal (Conviction: +8%, Raw: +9%)
|net sentiment| ≥25%

Conviction-weighted: +8% (neutral) — Raw: +9%

≥15%

|OI skew| 25.1% — call-heavy

Same sign, |vol skew| ≥10%

Vol skew +30.8%, OI skew +25.1% — aligned

≥2/3 conditions

0-DTE 10%, far-OTM 15%, avg DTE 30

|change| ≥3%

OI change +0.0% (5d) — stable

|weighted flow| ≥20%

ITM: -1%, ATM: -0%, OTM: +21% — neutral (ITM/ATM aligned)

Sector Relative≤40% or ≥60%

Sector P/C percentile 22% — very bullish vs sector

Activity

Unusual activity?

1.7
QuietActive

Detects volume surges,

, and unusual options activity that may signal moves.

Risk Checks0/8 checks passed
≥1.5x

Volume 0.2x avg — normal

≥15%

Vol/OI 0.7% — normal turnover

≥2 days

1 day(s) elevated — may be one-day event

≥5%

OI change -0.7% (5d) — stable

Sector Relative≥60%

Sector activity percentile 21% — below sector avg

≥30%

Large trade volume 11% — mostly retail

≥60%

Aggressive execution 21% — patient

≥30

Conviction +8 (bullish) — mixed

Liquidity

Can I trade efficiently?

3.4
IlliquidLiquid

Evaluates

, volume depth, and open interest for trade execution quality.

Risk Checks3/8 checks passed
≤5.0%

Spread 17.0% — wide

≥10,000

OI 514,619 — deep

≥500

Volume 3,687/day — adequate

≤$0.50

$0.85 to cross — expensive

≥5 strikes

0 liquid strikes — limited options

Sector Relative≤40%

Sector spread percentile 61% — wider than sector

≥100 contracts

Depth 210.6 contracts (bid:105.8 ask:104.8) — adequate

<1.0%

Avg slippage 6.94% — poor

Timing

Is now a good time?

7.1
RiskyFavorable

Considers earnings proximity,

, and event calendar for optimal entry timing.

Risk Checks7/9 checks passed
|slope| ≥5%

Slope -13.8% — contango

<30 or >70

IV percentile 29% — buyer opportunity

≥10pts kink

IV kink -5.3pts — no clear event

<0.5 or >2.0

θ/ν ratio 185.78 — favors income trades

≥3 expirations

4 liquid expirations — flexible

≥60% (safe)

safe window: No earnings detected

<1.2 ratio

Spread ratio 1.00x — stable

≥25% strength + ≥50% consistency

Flow +8% @ 54% consistency — unclear

≥40 composite score

Score 41 (ITM 20% + inst 11%) — moderate institutional

Directional Strategy Fit

Option Buyers
Long Calls7.0
bullishIV cheap, bullish flow
Long Puts5.2
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.