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 1.9% — cheap vs history
IV/HV 1.24x — IV premium over HV
Sector percentile 3% — below sector median
Front/Back 1.06x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 13.5% — normal range
Effective IV 63.4% (ATM 13.5% + spread 25.0% + bias) — good value
Total drag 37.54% (spread 24.97% + slippage 12.57%) — high friction
Vega efficiency 0.00 (vega 0.000 / spread 24.97%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +55% (strong bullish) — Raw: +50%
|OI skew| 87.3% — put-heavy
Vol skew -53.7%, OI skew -87.3% — aligned
0-DTE 5%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -33%, ATM: +56%, OTM: +0% — neutral (ITM/ATM divergent)
Sector P/C percentile 94% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.1x avg — normal
Vol/OI 0.4% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +2.8% (5d) — building
Sector activity percentile 9% — quiet vs sector
Large trade volume 0% — mostly retail
Aggressive execution 52% — patient
Conviction +55 (bullish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 25.0% — wide
OI 20,531 — adequate
Volume 82/day — thin
$1.25 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 19% — much tighter than sector
Depth 72.5 contracts (bid:48.9 ask:23.6) — thin
Avg slippage 12.57% — poor
Is now a good time?
Considers earnings proximity,
Slope +5.7% — backwardation
IV percentile 2% — buyer opportunity
IV kink 0.5pts — no clear event
θ/ν ratio 1.00 — favors mixed
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +55% @ 78% consistency — STRONG directional (bullish)
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.