IV is low with bullish flow. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 3.5% — cheap vs history
IV/HV 2.37x — IV premium over HV
Sector percentile 5% — below sector median
Front/Back 0.92x — contango
Put/Call IV 1.16x — elevated
ATM IV 17.3% — normal range
Effective IV 46.2% (ATM 17.3% + spread 14.5% + bias) — excellent value
Total drag 20.71% (spread 14.46% + slippage 6.25%) — high friction
Vega efficiency 0.21 (vega 0.297 / spread 14.46%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: -14% (bearish) — Raw: -12%
|OI skew| 77.9% — call-heavy
Vol skew +88.1%, OI skew +77.9% — aligned
0-DTE 43%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +84%, ATM: -43%, OTM: +0% — strong bullish (ITM/ATM divergent)
Sector P/C percentile 4% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.4x avg — normal
Vol/OI 2.6% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +1.0% (5d) — stable
Sector activity percentile 44% — neutral vs sector
Large trade volume 26% — mixed
Aggressive execution 44% — patient
Conviction -14 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 14.5% — wide
OI 72,148 — deep
Volume 1,913/day — adequate
$0.72 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 21% — tighter than sector
Depth 358.5 contracts (bid:233.8 ask:124.7) — adequate
Avg slippage 6.25% — poor
Is now a good time?
Considers earnings proximity,
Slope -8.1% — contango
IV percentile 4% — buyer opportunity
IV kink -1.9pts — no clear event
θ/ν ratio 23.24 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -14% @ 57% consistency — unclear
Score 56 (ITM 20% + inst 26%) — moderate institutional
For educational purposes only. Not investment advice.