IV is low with bearish flow. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 14.4% — cheap vs history
IV/HV 1.60x — IV premium over HV
Sector percentile 24% — below sector median
Front/Back 1.74x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 22.5% — normal range
Effective IV 47.5% (ATM 22.5% + spread 12.5% + bias) — excellent value
Total drag 20.46% (spread 12.49% + slippage 7.97%) — high friction
Vega efficiency 39.28 (vega 49.055 / spread 12.49%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -4% (neutral) — Raw: +0%
|OI skew| 60.3% — put-heavy
Vol skew -38.0%, OI skew -60.3% — aligned
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -11%, ATM: +14%, OTM: -14% — neutral (ITM/ATM divergent)
Sector P/C percentile 94% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.2x avg — normal
Vol/OI 1.0% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +2.3% (5d) — building
Sector activity percentile 31% — below sector avg
Large trade volume 38% — institutional presence
Aggressive execution 42% — patient
Conviction -4 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 12.5% — wide
OI 665,052 — deep
Volume 6,477/day — active
$0.62 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 37% — tighter than sector
Depth 348.8 contracts (bid:124.7 ask:224.1) — adequate
Avg slippage 7.97% — poor
Is now a good time?
Considers earnings proximity,
Slope +73.6% — backwardation
IV percentile 14% — buyer opportunity
IV kink 15.0pts — event priced
θ/ν ratio 1430.17 — favors income trades
4 liquid expirations — flexible
caution advised: No earnings detected; CPI in 1d (HIGH)
Spread ratio 1.00x — stable
Flow -4% @ 52% consistency — unclear
Score 68 (ITM 20% + inst 38%) — HIGH institutional
For educational purposes only. Not investment advice.