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 12.1% — cheap vs history
IV/HV 6.31x — IV premium over HV
Sector percentile 19% — below sector median
Front/Back 1.62x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 24.3% — normal range
Effective IV 308.0% (ATM 24.3% + spread 141.9% + bias) — expensive
Total drag 183.43% (spread 141.86% + slippage 41.57%) — high friction
Vega efficiency 0.09 (vega 1.266 / spread 141.86%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +63% (strong bullish) — Raw: +26%
|OI skew| 21.6% — call-heavy
Vol skew -12.8%, OI skew +21.6% — divergent (opposite)
0-DTE 33%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +0%, ATM: +26%, OTM: +0% — bullish (ITM/ATM divergent)
Sector P/C percentile 89% — very bearish 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 -3.3% (5d) — unwinding
Sector activity percentile 32% — below sector avg
Large trade volume 0% — mostly retail
Aggressive execution 38% — patient
Conviction +63 (bullish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 141.9% — wide
OI 2,406 — thin
Volume 39/day — thin
$7.09 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 32% — tighter than sector
Depth 120.3 contracts (bid:101.8 ask:18.5) — adequate
Avg slippage 41.57% — poor
Is now a good time?
Considers earnings proximity,
Slope +62.5% — backwardation
IV percentile 12% — buyer opportunity
IV kink 5.8pts — no clear event
θ/ν ratio 5.93 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +63% @ 82% consistency — STRONG directional (bullish)
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.