AEPAmerican Electric Power Company, Inc.
Options Analysis Report•ELECTRIC SERVICES
Market Cap $72.7B|NASDAQ
● 2026-04-17$133.66
BULLISH
Analysis: 2026-04-16 EOD data
1Y +26.7%YTD +15.4%7D -1.9%
Options Vol
917
30D
Implied Move
±6.8%
IV Rank
42%
AEP Options Overview
IV is low. Conditions favor option buyers.
REWARDS
RISK ANALYSIS
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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
IV
levels.Risk Checks6/9 checks passed
IV Rank
≤35%IV Rank 2.5% — cheap vs history
IV/HV Ratio
<1.05xIV/HV 1.27x — IV premium over HV
Sector Relative≤50%
Sector percentile 24% — below sector median
Term Structure
<1.1xFront/Back 1.11x — backwardation
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 22.4% — normal range
Spread-Adjusted Value
<80%Effective IV 48.1% (ATM 22.4% + spread 12.9% + bias) — excellent value
Execution Efficiency
<3.0%Total drag 18.23% (spread 12.86% + slippage 5.37%) — high friction
Vega Efficiency
≥5.0Vega efficiency 31.61 (vega 40.649 / spread 12.86%) — efficient
Sentiment
Bullish or bearish?
6.0
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksVery Bullish - Moderate signal (Conviction: +41%, Raw: +35%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +41% (strong bullish) — Raw: +35%
OI Skew Magnitude
≥15%|OI skew| 36.9% — call-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew -11.9%, OI skew +36.9% — divergent (opposite)
Conviction Quality
≥2/3 conditions0-DTE 8%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: +8%, ATM: -2%, OTM: +47% — neutral (ITM/ATM divergent)
Sector Relative≤40% or ≥60%
Sector P/C percentile 84% — very bearish vs sector
Activity
Unusual activity?
3.6
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks2/9 checks passed
Volume Surge
≥1.5xVolume 0.5x avg — normal
Turnover Rate
≥15%Vol/OI 1.7% — normal turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change +5.6% (5d) — building
Sector Relative≥60%
Sector activity percentile 28% — below sector avg
Trade Quality
≥30%Large trade volume 22% — mixed
Execution Urgency
≥60%Aggressive execution 43% — patient
Flow Conviction
≥30Conviction +41 (bullish) — moderate
Liquidity
Can I trade efficiently?
3.8
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks4/8 checks passed
Tradeable Spread
≤5.0%Spread 12.9% — wide
Adequate OI
≥10,000OI 54,901 — deep
Active Volume
≥500Volume 917/day — adequate
Reasonable Cost
≤$0.50$0.64 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 31% — tighter than sector
Order Book Depth
≥100 contractsDepth 208.8 contracts (bid:99.8 ask:109.0) — adequate
Execution Quality
<1.0%Avg slippage 5.37% — poor
Timing
Is now a good time?
7.9
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks8/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +11.2% — backwardation
IV Percentile Clarity
<30 or >70IV percentile 2% — buyer opportunity
Event Detection
≥10pts kinkIV kink 2.0pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 1639.06 — favors income trades
Expiration Distribution
≥3 expirations3 liquid expirations — flexible
Event Risk
≥60% (safe)safe window: Earnings in 18d (low risk)
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow +41% @ 70% consistency — STRONG directional (bullish)
Smart Money Timing
≥40 composite scoreScore 52 (ITM 20% + inst 22%) — moderate institutional
Directional Strategy Fit
Option Buyers
Long Calls6.9
bullishIV cheap, bullish flow
Long Puts5.6
bearishIV cheap, bullish flow
Premium Sellers
Cash-Secured Put4.9
bullishIV too cheap, bullish flow
Covered Call4.2
bearishIV too cheap, bullish flow
For educational purposes only. Not investment advice.