IV is low with bullish flow. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 1.4% — cheap vs history
IV/HV 1.39x — IV premium over HV
Sector percentile 2% — below sector median
Front/Back 1.14x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 11.2% — normal range
Effective IV 29.3% (ATM 11.2% + spread 9.1% + bias) — excellent value
Total drag 13.28% (spread 9.06% + slippage 4.22%) — high friction
Vega efficiency 20.00 (vega 18.122 / spread 9.06%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +40% (strong bullish) — Raw: +39%
|OI skew| 86.5% — call-heavy
Vol skew +94.3%, OI skew +86.5% — aligned
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +13%, ATM: +62%, OTM: +36% — strong bullish (ITM/ATM aligned)
Sector P/C percentile 2% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 2.0x avg — hot
Vol/OI 3.4% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +3.3% (5d) — building
Sector activity percentile 51% — neutral vs sector
Large trade volume 25% — mixed
Aggressive execution 12% — patient
Conviction +40 (bullish) — moderate
Can I trade efficiently?
Evaluates
Spread 9.1% — wide
OI 72,380 — deep
Volume 2,429/day — adequate
$0.45 to cross — cheap
0 liquid strikes — limited options
Sector spread percentile 19% — much tighter than sector
Depth 104.1 contracts (bid:50.6 ask:53.5) — adequate
Avg slippage 4.22% — poor
Is now a good time?
Considers earnings proximity,
Slope +14.4% — backwardation
IV percentile 1% — buyer opportunity
IV kink 1.9pts — no clear event
θ/ν ratio 2665.04 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +40% @ 70% consistency — moderate (bullish)
Score 55 (ITM 20% + inst 25%) — moderate institutional
For educational purposes only. Not investment advice.