Options/XLC

XLCState Street Communication Services Select Sector SPDR ETF

Options Analysis Report

AUM $22.5B|ARCX

● 2026-08-28$111.41

BEARISH

Analysis: 2026-08-27 EOD data

1Y -0.2%YTD -4.7%7D +0.0%

Options Vol

3,940

30D

Implied Move

±5.8%

IV Rank

31%

XLC Options Overview

IV is low. Conditions favor option buyers.

REWARDS

RISK ANALYSIS

Snowflake Analysis

Favorable conditions for option buyers

Learn

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XLC Gamma Walls

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XLC Hedge Radar

Neutral

Full Hedge Radar

Neither score is at an extreme today. Neither axis is a forecast — this is where XLC sits on protection cost vs. fragility today.

Protection is priced in the fair band (4.22) — downside puts carry 1.2 IV points LESS than at-the-money, and the move being priced is 1.42x this name's own median 20-trading-day move, measured against this name's own rolling 20-trading-day realized moves (484 overlapping windows). Fragility reads neutral (4.91): it is trading 0% above its hedge wall on a wall graded HIGH for reliability, and its realized-vol regime is stable.

Protection cost

4.22/ 10fair

Basis: cross_sectional

Fragility

4.91/ 10neutral

Basis: per_ticker

Value

Is IV priced right?

6.0

ExpensiveCheap

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

levels.

Risk Checks5/9 checks passed

IV Rank

≤35%

IV Rank 29.7% — cheap vs history

IV/HV Ratio

<1.05x

IV/HV 1.33x — IV premium over HV

Sector Relative≤50%

Sector percentile 49% — below sector median

Term Structure

<1.1x

Front/Back 1.12x — backwardation

Skew Normal

<1.25x

Put/Call IV 1.16x — elevated

Absolute IV

<80%

ATM IV 23.8% — normal range

Spread-Adjusted Value

<80%

Effective IV 45.1% (ATM 23.8% + spread 10.6% + bias) — excellent value

Execution Efficiency

<3.0%

Total drag 12.90% (spread 10.63% + slippage 2.27%) — high friction

Vega Efficiency

≥5.0

Vega efficiency 1.87 (vega 1.990 / spread 10.63%) — spread drag

Sentiment

Bullish or bearish?

3.5

BearishBullish

Analyzes

put/call ratios

open interest skew

, and flow direction to determine market bias.

Risk ChecksNeutral - Moderate signal (Conviction: +2%, Raw: +0%)

Flow Direction

|net sentiment| ≥25%

Conviction-weighted: +2% (neutral) — Raw: +0%

OI Skew Magnitude

≥15%

|OI skew| 70.5% — put-heavy

Volume-OI Alignment

Same sign, |vol skew| ≥10%

Vol skew -38.3%, OI skew -70.5% — aligned

Conviction Quality

≥2/3 conditions

0-DTE 20%, far-OTM 15%, avg DTE 30

OI Momentum

|change| ≥3%

OI change +0.0% (5d) — stable

Smart Money Flow

|weighted flow| ≥20%

ITM: +2%, ATM: +15%, OTM: -36% — neutral (ITM/ATM aligned)

Sector Relative≤40% or ≥60%

Sector P/C percentile 94% — very bearish vs sector

Activity

Unusual activity?

4.1

QuietActive

Detects volume surges,

block trades

, and unusual options activity that may signal moves.

Risk Checks2/8 checks passed

Volume Surge

≥1.5x

Volume 1.9x avg — elevated

Turnover Rate

≥15%

Vol/OI 1.6% — normal turnover

Multi-Day Persistence

≥2 days

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

OI Build

≥5%

OI change -2.4% (5d) — unwinding

Sector Relative≥60%

Sector activity percentile 38% — below sector avg

Trade Quality

≥30%

Large trade volume 51% — heavy institutional

Execution Urgency

≥60%

Aggressive execution 14% — patient

Flow Conviction

≥30

Conviction +2 (bullish) — mixed

Liquidity

Can I trade efficiently?

4.0

IlliquidLiquid

Evaluates

bid-ask spreads

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

Risk Checks3/8 checks passed

Tradeable Spread

≤5.0%

Spread 10.6% — wide

Adequate OI

≥10,000

OI 250,118 — deep

Active Volume

≥500

Volume 3,940/day — adequate

Reasonable Cost

≤$0.50

$0.53 to cross — expensive

Strike Coverage

≥5 strikes

1 liquid strikes — limited options

Sector Relative≤40%

Sector spread percentile 61% — wider than sector

Order Book Depth

≥100 contracts

Depth 120.30000000000001 contracts (bid:41.4 ask:78.9) — adequate

Execution Quality

<1.0%

Avg slippage 2.27% — poor

Timing

Is now a good time?

7.2

RiskyFavorable

Considers earnings proximity,

time decay

, and event calendar for optimal entry timing.

Risk Checks7/9 checks passed

Term Structure Clarity

|slope| ≥5%

Slope +11.6% — backwardation

IV Percentile Clarity

<30 or >70

IV percentile 30% — buyer opportunity

Event Detection

≥10pts kink

IV kink 2.1pts — no clear event

Theta/Vega Clarity

<0.5 or >2.0

θ/ν ratio 3.23 — favors income trades

Expiration Distribution

≥3 expirations

4 liquid expirations — flexible

Event Risk

≥60% (safe)

safe window: No earnings detected

Spread Momentum

<1.2 ratio

Spread ratio 1.00x — stable

Flow Momentum

≥25% strength + ≥50% consistency

Flow +2% @ 51% consistency — unclear

Smart Money Timing

≥40 composite score

Score 81 (ITM 20% + inst 51%) — HIGH institutional

Directional Strategy Fit

Option Buyers

Long Calls5.0

bullishIV cheap, bearish flow

Long Puts6.5

bearishIV cheap, bearish flow

Premium Sellers

Cash-Secured Put4.3

bullishIV too cheap, bearish flow

Covered Call5.3

bearishIV too cheap, bearish flow

For educational purposes only. Not investment advice.