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 2.5% — cheap vs history
IV/HV 0.92x — IV ≤ HV
Sector percentile 4% — below sector median
Front/Back 0.88x — contango
Put/Call IV 1.16x — elevated
ATM IV 15.9% — normal range
Effective IV 54.3% (ATM 15.9% + spread 19.2% + bias) — good value
Total drag 21.50% (spread 19.18% + slippage 2.32%) — high friction
Vega efficiency 24.76 (vega 47.494 / spread 19.18%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +23% (bullish) — Raw: +20%
|OI skew| 30.4% — put-heavy
Vol skew +3.4%, OI skew -30.4% — divergent (opposite)
0-DTE 41%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +47%, ATM: +1%, OTM: +39% — strong bullish (ITM/ATM aligned)
Sector P/C percentile 31% — bullish vs sector
Unusual activity?
Detects volume surges,
Volume 1.0x avg — normal
Vol/OI 9.2% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +7.6% (5d) — building
Sector activity percentile 79% — active vs sector
Large trade volume 14% — mostly retail
Aggressive execution 19% — patient
Conviction +23 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 19.2% — wide
OI 554,613 — deep
Volume 50,871/day — active
$0.96 to cross — expensive
10 liquid strikes — good coverage
Sector spread percentile 20% — tighter than sector
Depth 145.4 contracts (bid:65.4 ask:80.0) — adequate
Avg slippage 2.32% — poor
Is now a good time?
Considers earnings proximity,
Slope -12.1% — contango
IV percentile 2% — buyer opportunity
IV kink -1.2pts — no clear event
θ/ν ratio 260.24 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +23% @ 61% consistency — unclear
Score 44 (ITM 20% + inst 14%) — moderate institutional
For educational purposes only. Not investment advice.