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 22.9% — cheap vs history
IV/HV 2.08x — IV premium over HV
Sector percentile 33% — below sector median
Front/Back 1.53x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 29.4% — normal range
Effective IV 58.0% (ATM 29.4% + spread 14.3% + bias) — good value
Total drag 17.06% (spread 14.29% + slippage 2.77%) — high friction
Vega efficiency 21.47 (vega 30.686 / spread 14.29%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +81% (strong bullish) — Raw: +70%
|OI skew| 47.5% — put-heavy
Vol skew +14.8%, OI skew -47.5% — divergent (opposite)
0-DTE 2%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -25%, ATM: +83%, OTM: +75% — bullish (ITM/ATM divergent)
Sector P/C percentile 30% — bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.8x avg — normal
Vol/OI 2.1% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +1.1% (5d) — stable
Sector activity percentile 39% — below sector avg
Large trade volume 64% — heavy institutional
Aggressive execution 20% — patient
Conviction +81 (bullish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 14.3% — wide
OI 484,519 — deep
Volume 9,969/day — active
$0.71 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 44% — neutral vs sector
Depth 348.0 contracts (bid:178.7 ask:169.3) — adequate
Avg slippage 2.77% — poor
Is now a good time?
Considers earnings proximity,
Slope +52.7% — backwardation
IV percentile 23% — buyer opportunity
IV kink 13.9pts — event priced
θ/ν ratio 1061.81 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +81% @ 91% consistency — STRONG directional (bullish)
Score 94 (ITM 20% + inst 64%) — HIGH institutional
For educational purposes only. Not investment advice.