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 7.5% — cheap vs history
IV/HV 0.85x — IV ≤ HV
Sector percentile 11% — below sector median
Front/Back 1.18x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 21.8% — normal range
Effective IV 39.6% (ATM 21.8% + spread 8.9% + bias) — excellent value
Total drag 13.58% (spread 8.92% + slippage 4.66%) — high friction
Vega efficiency 15.08 (vega 13.451 / spread 8.92%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +23% (bullish) — Raw: +2%
|OI skew| 14.1% — balanced
Vol skew -51.9%, OI skew -14.1% — aligned
0-DTE 42%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -19%, ATM: -23%, OTM: +89% — bearish (ITM/ATM aligned)
Sector P/C percentile 94% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.5x avg — normal
Vol/OI 3.4% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +10.3% (5d) — building
Sector activity percentile 53% — neutral vs sector
Large trade volume 56% — heavy institutional
Aggressive execution 59% — patient
Conviction +23 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 8.9% — wide
OI 191,517 — deep
Volume 6,576/day — active
$0.45 to cross — cheap
0 liquid strikes — limited options
Sector spread percentile 26% — tighter than sector
Depth 198.1 contracts (bid:82.1 ask:116.0) — adequate
Avg slippage 4.66% — poor
Is now a good time?
Considers earnings proximity,
Slope +18.0% — backwardation
IV percentile 8% — buyer opportunity
IV kink 2.6pts — no clear event
θ/ν ratio 940.62 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +23% @ 62% consistency — unclear
Score 86 (ITM 20% + inst 56%) — HIGH institutional
For educational purposes only. Not investment advice.