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 12.0% — cheap vs history
IV/HV 0.68x — IV ≤ HV
Sector percentile 18% — below sector median
Front/Back 0.82x — contango
Put/Call IV 1.16x — elevated
ATM IV 24.2% — normal range
Effective IV 33.7% (ATM 24.2% + spread 4.8% + bias) — excellent value
Total drag 10.11% (spread 4.77% + slippage 5.34%) — high friction
Vega efficiency 126.33 (vega 60.258 / spread 4.77%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -6% (neutral) — Raw: -3%
|OI skew| 29.1% — call-heavy
Vol skew +18.1%, OI skew +29.1% — aligned
0-DTE 32%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -8%, ATM: -3%, OTM: -2% — neutral (ITM/ATM aligned)
Sector P/C percentile 27% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.6x avg — normal
Vol/OI 4.5% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +2.6% (5d) — building
Sector activity percentile 59% — neutral vs sector
Large trade volume 41% — institutional presence
Aggressive execution 30% — patient
Conviction -6 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 4.8% — acceptable
OI 5,512,295 — deep
Volume 248,114/day — active
$0.24 to cross — cheap
3 liquid strikes — limited options
Sector spread percentile 32% — tighter than sector
Depth 366.9 contracts (bid:172.3 ask:194.6) — adequate
Avg slippage 5.34% — poor
Is now a good time?
Considers earnings proximity,
Slope -17.6% — contango
IV percentile 12% — buyer opportunity
IV kink -3.6pts — no clear event
θ/ν ratio 305.26 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -6% @ 53% consistency — unclear
Score 71 (ITM 20% + inst 41%) — HIGH institutional
For educational purposes only. Not investment advice.