HWMHowmet Aerospace Inc.
Options Analysis Report•ROLLING DRAWING & EXTRUDING OF NONFERROUS METALS
Market Cap $102.5B|NYSE
● 2026-04-17$255.69
NEUTRAL
Analysis: 2026-04-16 EOD data
1Y +114.0%YTD +20.8%7D +1.2%
Options Vol
6,465
30D
Implied Move
±11.2%
IV Rank
40%
HWM Options Overview
Mixed signals. No clear edge detected.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
5.7
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks6/9 checks passed
IV Rank
≤35%IV Rank 60.9% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 0.94x — IV ≤ HV
Sector Relative≤50%
Sector percentile 65% — above sector median
Term Structure
<1.1xFront/Back 0.95x — contango
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 39.2% — normal range
Spread-Adjusted Value
<80%Effective IV 59.9% (ATM 39.2% + spread 10.4% + bias) — good value
Execution Efficiency
<3.0%Total drag 15.37% (spread 10.37% + slippage 5.00%) — high friction
Vega Efficiency
≥5.0Vega efficiency 47.62 (vega 49.382 / spread 10.37%) — efficient
Sentiment
Bullish or bearish?
6.7
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksVery Bullish - Strong signal (Conviction: +91%, Raw: +85%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +91% (strong bullish) — Raw: +85%
OI Skew Magnitude
≥15%|OI skew| 22.1% — put-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew -80.5%, OI skew -22.1% — aligned
Conviction Quality
≥2/3 conditions0-DTE 3%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: +20%, ATM: +18%, OTM: +88% — bullish (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 95% — very bearish vs sector
Activity
Unusual activity?
6.6
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks5/9 checks passed
Volume Surge
≥1.5xVolume 2.2x avg — hot
Turnover Rate
≥15%Vol/OI 11.0% — normal turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change +11.9% (5d) — building
Sector Relative≥60%
Sector activity percentile 89% — very active vs sector
Trade Quality
≥30%Large trade volume 82% — heavy institutional
Execution Urgency
≥60%Aggressive execution 34% — patient
Flow Conviction
≥30Conviction +91 (bullish) — strong conviction
Liquidity
Can I trade efficiently?
4.0
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks2/8 checks passed
Tradeable Spread
≤5.0%Spread 10.4% — wide
Adequate OI
≥10,000OI 58,935 — deep
Active Volume
≥500Volume 6,465/day — active
Reasonable Cost
≤$0.50$0.52 to cross — expensive
Strike Coverage
≥5 strikes1 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 67% — wider than sector
Order Book Depth
≥100 contractsDepth 52.1 contracts (bid:23.8 ask:28.3) — thin
Execution Quality
<1.0%Avg slippage 5.00% — poor
Timing
Is now a good time?
8.0
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks6/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope -4.6% — flat/unclear
IV Percentile Clarity
<30 or >70IV percentile 61% — neutral
Event Detection
≥10pts kinkIV kink -1.8pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 442.89 — favors income trades
Expiration Distribution
≥3 expirations5 liquid expirations — flexible
Event Risk
≥60% (safe)safe window: Earnings in 20d (low risk)
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow +91% @ 95% consistency — STRONG directional (bullish)
Smart Money Timing
≥40 composite scoreScore 112 (ITM 20% + inst 82%) — HIGH institutional
Directional Strategy Fit
Option Buyers
Long Calls6.1
bullishIV fair, bullish flow
Long Puts5.0
bearishIV fair, bullish flow
Premium Sellers
Cash-Secured Put5.6
bullishIV fair, bullish flow
Covered Call4.4
bearishIV fair, bullish flow
For educational purposes only. Not investment advice.