Options/DOW

DOWDow Inc.

Options Analysis Report•PLASTIC MATERIALS, SYNTH RESINS & NONVULCAN ELASTOMERS

Market Cap $22.0B|NYSE

● 2026-08-31$30.51

NEUTRAL

Analysis: 2026-08-28 EOD data

1Y +25.0%YTD +25.7%7D -3.0%

Options Vol

26,019

30D

Implied Move

±10.4%

IV Rank

DOW Options Overview

IV is elevated with bullish flow and unusual activity. No clear edge detected.

REWARDS

RISK ANALYSIS

Snowflake Analysis

Favorable conditions for premium sellers

Learn

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DOW Gamma Walls

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Value

Is IV priced right?

7.0

ExpensiveCheap

Measures whether options are cheap, fair, or rich relative to historical and peer

levels.

Risk Checks5/9 checks passed

IV Rank

≤35%

IV Rank 72.9% — elevated vs history

IV/HV Ratio

<1.05x

IV/HV 0.98x — IV ≤ HV

Sector Relative≤50%

Sector percentile 55% — above sector median

Term Structure

<1.1x

Front/Back 0.91x — contango

Skew Normal

<1.25x

Put/Call IV 1.16x — elevated

Absolute IV

<80%

ATM IV 36.0% — normal range

Spread-Adjusted Value

<80%

Effective IV 54.6% (ATM 36.0% + spread 9.3% + bias) — good value

Execution Efficiency

<3.0%

Total drag 14.60% (spread 9.28% + slippage 5.32%) — high friction

Vega Efficiency

≥5.0

Vega efficiency 4.36 (vega 4.043 / spread 9.28%) — spread drag

Sentiment

Bullish or bearish?

4.8

BearishBullish

Analyzes

put/call ratios

open interest skew

, and flow direction to determine market bias.

Risk ChecksVery Bearish - Moderate signal (Conviction: -36%, Raw: -23%)

Flow Direction

|net sentiment| ≥25%

Conviction-weighted: -36% (strong bearish) — Raw: -23%

OI Skew Magnitude

≥15%

|OI skew| 0.6% — balanced

Volume-OI Alignment

Same sign, |vol skew| ≥10%

Vol skew +71.4%, OI skew -0.6% — divergent (opposite)

Conviction Quality

≥2/3 conditions

0-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: -44%, ATM: +4%, OTM: -6% — bearish (ITM/ATM divergent)

Sector Relative≤40% or ≥60%

Sector P/C percentile 10% — very bullish vs sector

Activity

Unusual activity?

6.3

QuietActive

Detects volume surges,

block trades

, and unusual options activity that may signal moves.

Risk Checks6/8 checks passed

Volume Surge

≥1.5x

Volume 1.6x avg — elevated

Turnover Rate

≥15%

Vol/OI 5.2% — normal turnover

Multi-Day Persistence

≥2 days

2 day(s) elevated — sustained

OI Build

≥5%

OI change +8.8% (5d) — building

Sector Relative≥60%

Sector activity percentile 80% — very active vs sector

Trade Quality

≥30%

Large trade volume 35% — institutional presence

Execution Urgency

≥60%

Aggressive execution 22% — patient

Flow Conviction

≥30

Conviction -36 (bearish) — moderate

Liquidity

Can I trade efficiently?

4.8

IlliquidLiquid

Evaluates

bid-ask spreads

, volume depth, and open interest for trade execution quality.

Risk Checks4/8 checks passed

Tradeable Spread

≤5.0%

Spread 9.3% — wide

Adequate OI

≥10,000

OI 497,503 — deep

Active Volume

≥500

Volume 26,019/day — active

Reasonable Cost

≤$0.50

$0.46 to cross — cheap

Strike Coverage

≥5 strikes

1 liquid strikes — limited options

Sector Relative≤40%

Sector spread percentile 55% — neutral vs sector

Order Book Depth

≥100 contracts

Depth 458.9 contracts (bid:225.5 ask:233.4) — adequate

Execution Quality

<1.0%

Avg slippage 5.32% — poor

Timing

Is now a good time?

8.1

RiskyFavorable

Considers earnings proximity,

time decay

, and event calendar for optimal entry timing.

Risk Checks8/9 checks passed

Term Structure Clarity

|slope| ≥5%

Slope -8.7% — contango

IV Percentile Clarity

<30 or >70

IV percentile 73% — seller opportunity

Event Detection

≥10pts kink

IV kink -2.3pts — no clear event

Theta/Vega Clarity

<0.5 or >2.0

θ/ν ratio 269.52 — favors income trades

Expiration Distribution

≥3 expirations

5 liquid expirations — flexible

Event Risk

≥60% (safe)

safe window: No events detected

Spread Momentum

<1.2 ratio

Spread ratio 1.00x — stable

Flow Momentum

≥25% strength + ≥50% consistency

Flow -36% @ 68% consistency — moderate (bearish)

Smart Money Timing

≥40 composite score

Score 65 (ITM 20% + inst 35%) — HIGH institutional

Directional Strategy Fit

Option Buyers

Long Calls6.0

bullishIV cheap, mixed flow

Long Puts6.2

bearishIV cheap, mixed flow

Premium Sellers

Cash-Secured Put4.7

bullishIV too cheap, mixed flow

Covered Call4.9

bearishIV too cheap, mixed flow

For educational purposes only. Not investment advice.

The Options Desk tracks the move options price into every US earnings report the week of Aug 31, next to how much each stock has actually moved on its past prints — plus the SPY, QQQ and IWM expected ranges and the gamma walls that box them in.

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