IV is low. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 5.0% — cheap vs history
IV/HV 1.02x — IV ≤ HV
Sector percentile 8% — below sector median
Front/Back 0.88x — contango
Put/Call IV 1.16x — elevated
ATM IV 19.1% — normal range
Effective IV 34.9% (ATM 19.1% + spread 7.9% + bias) — excellent value
Total drag 12.24% (spread 7.92% + slippage 4.32%) — high friction
Vega efficiency 12.88 (vega 10.201 / spread 7.92%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +10% (neutral) — Raw: +1%
|OI skew| 46.7% — put-heavy
Vol skew -7.6%, OI skew -46.7% — weak (same direction)
0-DTE 24%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +18%, ATM: +5%, OTM: -6% — bullish (ITM/ATM aligned)
Sector P/C percentile 88% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 1.2x avg — normal
Vol/OI 2.2% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +5.8% (5d) — building
Sector activity percentile 41% — neutral vs sector
Large trade volume 58% — heavy institutional
Aggressive execution 29% — patient
Conviction +10 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 7.9% — wide
OI 2,036,037 — deep
Volume 44,699/day — active
$0.40 to cross — cheap
0 liquid strikes — limited options
Sector spread percentile 23% — tighter than sector
Depth 630.5 contracts (bid:315.6 ask:314.9) — deep
Avg slippage 4.32% — poor
Is now a good time?
Considers earnings proximity,
Slope -12.2% — contango
IV percentile 5% — buyer opportunity
IV kink -1.4pts — no clear event
θ/ν ratio 1108.79 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +10% @ 55% consistency — unclear
Score 88 (ITM 20% + inst 58%) — HIGH institutional
For educational purposes only. Not investment advice.