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 29.0% — cheap vs history
IV/HV 0.99x — IV ≤ HV
Sector percentile 41% — below sector median
Front/Back 0.83x — contango
Put/Call IV 1.16x — elevated
ATM IV 32.1% — normal range
Effective IV 45.5% (ATM 32.1% + spread 6.7% + bias) — excellent value
Total drag 9.72% (spread 6.72% + slippage 3.00%) — high friction
Vega efficiency 30.30 (vega 20.358 / spread 6.72%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -19% (bearish) — Raw: -23%
|OI skew| 35.8% — call-heavy
Vol skew +44.9%, OI skew +35.8% — aligned
0-DTE 42%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +20%, ATM: -8%, OTM: -49% — neutral (ITM/ATM divergent)
Sector P/C percentile 20% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.4x avg — normal
Vol/OI 1.6% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +4.8% (5d) — building
Sector activity percentile 32% — below sector avg
Large trade volume 74% — heavy institutional
Aggressive execution 57% — patient
Conviction -19 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 6.7% — wide
OI 5,097,496 — deep
Volume 80,916/day — active
$0.34 to cross — cheap
1 liquid strikes — limited options
Sector spread percentile 51% — neutral vs sector
Depth 610.2 contracts (bid:320.8 ask:289.4) — deep
Avg slippage 3.00% — poor
Is now a good time?
Considers earnings proximity,
Slope -16.8% — contango
IV percentile 29% — buyer opportunity
IV kink -2.5pts — no clear event
θ/ν ratio 3038.57 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -19% @ 60% consistency — unclear
Score 104 (ITM 20% + inst 74%) — HIGH institutional
For educational purposes only. Not investment advice.