BWABorgWarner Inc.
Options Analysis Report•MOTOR VEHICLE PARTS & ACCESSORIES
Market Cap $15.6B|NYSE
● 2026-06-09$75.86
VERY BULLISH
Analysis: 2026-06-08 EOD data
1Y +132.4%YTD +62.7%7D +2.4%
Options Vol
2,183
30D
Implied Move
±15.3%
IV Rank
80%
BWA Options Overview
IV is elevated with bullish flow. No clear edge detected.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
4.3
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks4/9 checks passed
IV Rank
≤35%IV Rank 71.8% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 1.07x — IV premium over HV
Sector Relative≤50%
Sector percentile 70% — above sector median
Term Structure
<1.1xFront/Back 0.99x — contango
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 53.8% — normal range
Spread-Adjusted Value
<80%Effective IV 80.9% (ATM 53.8% + spread 13.6% + bias) — expensive
Execution Efficiency
<3.0%Total drag 17.71% (spread 13.55% + slippage 4.16%) — high friction
Vega Efficiency
≥5.0Vega efficiency 21.24 (vega 28.786 / spread 13.55%) — efficient
Sentiment
Bullish or bearish?
8.7
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksVery Bullish - Strong signal (Conviction: +63%, Raw: +55%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +63% (strong bullish) — Raw: +55%
OI Skew Magnitude
≥15%|OI skew| 48.9% — call-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +67.9%, OI skew +48.9% — aligned
Conviction Quality
≥2/3 conditions0-DTE 0%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: -28%, ATM: +56%, OTM: +57% — neutral (ITM/ATM divergent)
Sector Relative≤40% or ≥60%
Sector P/C percentile 25% — very bullish vs sector
Activity
Unusual activity?
3.8
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks3/9 checks passed
Volume Surge
≥1.5xVolume 0.3x avg — normal
Turnover Rate
≥15%Vol/OI 3.3% — 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 +2.1% (5d) — building
Sector Relative≥60%
Sector activity percentile 68% — active vs sector
Trade Quality
≥30%Large trade volume 53% — heavy institutional
Execution Urgency
≥60%Aggressive execution 39% — patient
Flow Conviction
≥30Conviction +63 (bullish) — strong conviction
Liquidity
Can I trade efficiently?
3.2
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks3/8 checks passed
Tradeable Spread
≤5.0%Spread 13.6% — wide
Adequate OI
≥10,000OI 66,148 — deep
Active Volume
≥500Volume 2,183/day — adequate
Reasonable Cost
≤$0.50$0.68 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 84% — much wider than sector
Order Book Depth
≥100 contractsDepth 136.5 contracts (bid:92.8 ask:43.7) — adequate
Execution Quality
<1.0%Avg slippage 4.16% — poor
Timing
Is now a good time?
6.4
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks6/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope -0.6% — flat/unclear
IV Percentile Clarity
<30 or >70IV percentile 72% — seller opportunity
Event Detection
≥10pts kinkIV kink 2.1pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 1262.54 — favors income trades
Expiration Distribution
≥3 expirations3 liquid expirations — flexible
Event Risk
≥60% (safe)caution advised: No earnings detected; CPI in 1d (HIGH)
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow +63% @ 82% consistency — STRONG directional (bullish)
Smart Money Timing
≥40 composite scoreScore 83 (ITM 20% + inst 53%) — HIGH institutional
Directional Strategy Fit
Option Buyers
Long Calls6.0
bullishIV fair, bullish flow
Long Puts3.4
bearishIV fair, bullish flow
Premium Sellers
Cash-Secured Put6.3
bullishIV fair, bullish flow
Covered Call3.7
bearishIV fair, bullish flow
For educational purposes only. Not investment advice.