AZOAutoZone, Inc.
Options Analysis Report•RETAIL-AUTO & HOME SUPPLY STORES
Market Cap $58.9B|NYSE
● 2026-04-17$3572.38
NEUTRAL
Analysis: 2026-04-16 EOD data
1Y +0.1%YTD +8.1%7D +4.1%
Options Vol
2,670
30D
Implied Move
±8.5%
IV Rank
10%
AZO Options Overview
IV is low. Conditions favor option buyers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
8.1
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks7/9 checks passed
IV Rank
≤35%IV Rank 28.0% — cheap vs history
IV/HV Ratio
<1.05xIV/HV 1.16x — IV premium over HV
Sector Relative≤50%
Sector percentile 20% — below sector median
Term Structure
<1.1xFront/Back 0.96x — contango
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 30.7% — normal range
Spread-Adjusted Value
<80%Effective IV 46.8% (ATM 30.7% + spread 8.0% + bias) — excellent value
Execution Efficiency
<3.0%Total drag 23.57% (spread 8.04% + slippage 15.53%) — high friction
Vega Efficiency
≥5.0Vega efficiency 1385.70 (vega 1114.104 / spread 8.04%) — efficient
Sentiment
Bullish or bearish?
5.2
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksBearish - Strong signal (Conviction: -25%, Raw: -24%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: -25% (bearish) — Raw: -24%
OI Skew Magnitude
≥15%|OI skew| 26.1% — call-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +16.0%, OI skew +26.1% — aligned
Conviction Quality
≥2/3 conditions0-DTE 22%, 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: -13%, OTM: -28% — neutral (ITM/ATM divergent)
Sector Relative≤40% or ≥60%
Sector P/C percentile 46% — neutral vs sector
Activity
Unusual activity?
6.4
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks4/9 checks passed
Volume Surge
≥1.5xVolume 2.1x avg — hot
Turnover Rate
≥15%Vol/OI 23.1% — high 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 +18.4% (5d) — building
Sector Relative≥60%
Sector activity percentile 96% — very active vs sector
Trade Quality
≥30%Large trade volume 0% — mostly retail
Execution Urgency
≥60%Aggressive execution 20% — patient
Flow Conviction
≥30Conviction -25 (bearish) — mixed
Liquidity
Can I trade efficiently?
4.3
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks4/8 checks passed
Tradeable Spread
≤5.0%Spread 8.0% — wide
Adequate OI
≥10,000OI 11,568 — adequate
Active Volume
≥500Volume 2,670/day — adequate
Reasonable Cost
≤$0.50$0.40 to cross — cheap
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 22% — tighter than sector
Order Book Depth
≥100 contractsDepth 12.0 contracts (bid:6.5 ask:5.5) — thin
Execution Quality
<1.0%Avg slippage 15.53% — poor
Timing
Is now a good time?
7.0
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks6/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope -4.2% — flat/unclear
IV Percentile Clarity
<30 or >70IV percentile 28% — buyer opportunity
Event Detection
≥10pts kinkIV kink -1.4pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 1261.87 — favors income trades
Expiration Distribution
≥3 expirations3 liquid expirations — flexible
Event Risk
≥60% (safe)safe window: No events detected
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow -25% @ 62% consistency — moderate (bearish)
Smart Money Timing
≥40 composite scoreScore 30 (ITM 20% + inst 0%) — retail dominated
Directional Strategy Fit
Option Buyers
Long Calls6.3
bullishIV cheap, mixed flow
Long Puts6.2
bearishIV cheap, mixed flow
Premium Sellers
Cash-Secured Put4.3
bullishIV too cheap, mixed flow
Covered Call4.2
bearishIV too cheap, mixed flow
For educational purposes only. Not investment advice.