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 8.7% — cheap vs history
IV/HV 7.09x — IV premium over HV
Sector percentile 1% — below sector median
Front/Back 0.52x — contango
Put/Call IV 1.16x — elevated
ATM IV 19.5% — normal range
Effective IV 62.7% (ATM 19.5% + spread 21.6% + bias) — good value
Total drag 32.12% (spread 21.61% + slippage 10.51%) — high friction
Vega efficiency 0.00 (vega 0.000 / spread 21.61%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +25% (bullish) — Raw: +38%
|OI skew| 72.0% — put-heavy
Vol skew -49.6%, OI skew -72.0% — aligned
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -11%, ATM: +75%, OTM: +0% — bullish (ITM/ATM divergent)
Sector P/C percentile 91% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.6x avg — normal
Vol/OI 0.6% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +2.5% (5d) — building
Sector activity percentile 37% — below sector avg
Large trade volume 0% — mostly retail
Aggressive execution 93% — highly urgent
Conviction +25 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 21.6% — wide
OI 45,024 — adequate
Volume 282/day — thin
$1.08 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 61% — wider than sector
Depth 30.799999999999997 contracts (bid:22.9 ask:7.9) — thin
Avg slippage 10.51% — poor
Is now a good time?
Considers earnings proximity,
Slope -48.4% — contango
IV percentile 9% — buyer opportunity
IV kink -9.4pts — no clear event
θ/ν ratio 1.00 — favors mixed
3 liquid expirations — flexible
acceptable: No earnings detected; FOMC in 5d
Spread ratio 1.00x — stable
Flow +25% @ 63% consistency — moderate (bullish)
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.