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 10.3% — cheap vs history
IV/HV 0.91x — IV ≤ HV
Sector percentile 17% — below sector median
Front/Back 1.39x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 20.5% — normal range
Effective IV 80.2% (ATM 20.5% + spread 29.9% + bias) — expensive
Total drag 37.37% (spread 29.85% + slippage 7.52%) — high friction
Vega efficiency 1.53 (vega 4.568 / spread 29.85%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +62% (strong bullish) — Raw: +50%
|OI skew| 4.6% — balanced
Vol skew -23.9%, OI skew +4.6% — divergent (opposite)
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -30%, ATM: +84%, OTM: +24% — bullish (ITM/ATM divergent)
Sector P/C percentile 92% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.4x avg — normal
Vol/OI 1.7% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change -1.0% (5d) — stable
Sector activity percentile 45% — neutral vs sector
Large trade volume 83% — heavy institutional
Aggressive execution 34% — patient
Conviction +62 (bullish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 29.9% — wide
OI 832,562 — deep
Volume 14,044/day — active
$1.49 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 31% — tighter than sector
Depth 431.0 contracts (bid:266.3 ask:164.7) — adequate
Avg slippage 7.52% — poor
Is now a good time?
Considers earnings proximity,
Slope +38.8% — backwardation
IV percentile 10% — buyer opportunity
IV kink 8.9pts — no clear event
θ/ν ratio 452.24 — favors income trades
4 liquid expirations — flexible
caution advised: No earnings detected; CPI in 1d (HIGH)
Spread ratio 1.00x — stable
Flow +62% @ 81% consistency — STRONG directional (bullish)
Score 113 (ITM 20% + inst 83%) — HIGH institutional
For educational purposes only. Not investment advice.