AWKAmerican Water Works Company, Inc
Options Analysis Report•WATER SUPPLY
Market Cap $25.7B|NYSE
● 2026-04-17$131.61
NEUTRAL
Analysis: 2026-04-16 EOD data
1Y -10.5%YTD +1.0%7D -4.1%
Options Vol
431
30D
Implied Move
±7.5%
IV Rank
28%
AWK Options Overview
IV is low. Conditions favor option buyers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
7.4
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 7.0% — cheap vs history
IV/HV Ratio
<1.05xIV/HV 1.12x — IV premium over HV
Sector Relative≤50%
Sector percentile 41% — below sector median
Term Structure
<1.1xFront/Back 1.12x — backwardation
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 24.6% — normal range
Spread-Adjusted Value
<80%Effective IV 58.2% (ATM 24.6% + spread 16.8% + bias) — good value
Execution Efficiency
<3.0%Total drag 23.83% (spread 16.80% + slippage 7.03%) — high friction
Vega Efficiency
≥5.0Vega efficiency 8.64 (vega 14.516 / spread 16.80%) — efficient
Sentiment
Bullish or bearish?
4.6
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksVery Bearish - Strong signal (Conviction: -36%, Raw: -23%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: -36% (strong bearish) — Raw: -23%
OI Skew Magnitude
≥15%|OI skew| 33.8% — call-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +1.2%, OI skew +33.8% — weak (same direction)
Conviction Quality
≥2/3 conditions0-DTE 27%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: +0%, ATM: -58%, OTM: +21% — bearish (ITM/ATM divergent)
Sector Relative≤40% or ≥60%
Sector P/C percentile 69% — bearish vs sector
Activity
Unusual activity?
4.0
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks1/9 checks passed
Volume Surge
≥1.5xVolume 1.0x avg — normal
Turnover Rate
≥15%Vol/OI 2.5% — 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 +4.8% (5d) — building
Sector Relative≥60%
Sector activity percentile 44% — neutral vs sector
Trade Quality
≥30%Large trade volume 0% — mostly retail
Execution Urgency
≥60%Aggressive execution 42% — patient
Flow Conviction
≥30Conviction -36 (bearish) — moderate
Liquidity
Can I trade efficiently?
3.1
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks1/8 checks passed
Tradeable Spread
≤5.0%Spread 16.8% — wide
Adequate OI
≥10,000OI 17,546 — adequate
Active Volume
≥500Volume 431/day — thin
Reasonable Cost
≤$0.50$0.84 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 47% — neutral vs sector
Order Book Depth
≥100 contractsDepth 54.099999999999994 contracts (bid:24.2 ask:29.9) — thin
Execution Quality
<1.0%Avg slippage 7.03% — poor
Timing
Is now a good time?
8.0
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks7/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +12.1% — backwardation
IV Percentile Clarity
<30 or >70IV percentile 7% — buyer opportunity
Event Detection
≥10pts kinkIV kink 2.1pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 217.95 — favors income trades
Expiration Distribution
≥3 expirations3 liquid expirations — flexible
Event Risk
≥60% (safe)acceptable: Earnings in 12d
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow -36% @ 68% consistency — moderate (bearish)
Smart Money Timing
≥40 composite scoreScore 30 (ITM 20% + inst 0%) — retail dominated
Directional Strategy Fit
Option Buyers
Long Calls5.8
bullishIV cheap, mixed flow
Long Puts6.1
bearishIV cheap, mixed flow
Premium Sellers
Cash-Secured Put4.2
bullishIV too cheap, mixed flow
Covered Call4.5
bearishIV too cheap, mixed flow
For educational purposes only. Not investment advice.