IV is elevated with unusual activity. Conditions favor premium sellers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 92.7% — elevated vs history
IV/HV 1.04x — IV ≤ HV
Sector percentile 82% — above sector median
Front/Back 1.02x — flat
Put/Call IV 1.16x — elevated
ATM IV 100.3% — crisis-level IV
Effective IV 121.8% (ATM 100.3% + spread 10.8% + bias) — expensive
Total drag 18.24% (spread 10.75% + slippage 7.49%) — high friction
Vega efficiency 18.33 (vega 19.701 / spread 10.75%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -4% (neutral) — Raw: +1%
|OI skew| 5.2% — balanced
Vol skew -6.8%, OI skew -5.2% — weak (same direction)
0-DTE 26%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -31%, ATM: +1%, OTM: +6% — bearish (ITM/ATM divergent)
Sector P/C percentile 84% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.7x avg — normal
Vol/OI 8.3% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +13.9% (5d) — building
Sector activity percentile 82% — very active vs sector
Large trade volume 18% — mixed
Aggressive execution 39% — patient
Conviction -4 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 10.8% — wide
OI 229,991 — deep
Volume 19,087/day — active
$0.54 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 89% — much wider than sector
Depth 103.69999999999999 contracts (bid:56.9 ask:46.8) — adequate
Avg slippage 7.49% — poor
Is now a good time?
Considers earnings proximity,
Slope +2.2% — flat/unclear
IV percentile 93% — seller opportunity
IV kink 1.8pts — no clear event
θ/ν ratio 14.04 — favors income trades
5 liquid expirations — flexible
acceptable: No earnings detected; FOMC in 5d
Spread ratio 1.00x — stable
Flow -4% @ 52% consistency — unclear
Score 48 (ITM 20% + inst 18%) — moderate institutional
For educational purposes only. Not investment advice.