IV is low with bullish flow and unusual activity. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 15.8% — cheap vs history
IV/HV 0.72x — IV ≤ HV
Sector percentile 24% — below sector median
Front/Back 0.90x — contango
Put/Call IV 1.16x — elevated
ATM IV 25.9% — normal range
Effective IV 46.9% (ATM 25.9% + spread 10.5% + bias) — excellent value
Total drag 13.25% (spread 10.50% + slippage 2.75%) — high friction
Vega efficiency 17.00 (vega 17.855 / spread 10.50%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -42% (strong bearish) — Raw: -28%
|OI skew| 62.4% — call-heavy
Vol skew +76.5%, OI skew +62.4% — aligned
0-DTE 28%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -44%, ATM: -21%, OTM: +11% — strong bearish (ITM/ATM aligned)
Sector P/C percentile 9% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.8x avg — normal
Vol/OI 4.6% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +1.6% (5d) — stable
Sector activity percentile 61% — active vs sector
Large trade volume 21% — mixed
Aggressive execution 15% — patient
Conviction -42 (bearish) — moderate
Can I trade efficiently?
Evaluates
Spread 10.5% — wide
OI 179,627 — deep
Volume 8,323/day — active
$0.53 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 37% — tighter than sector
Depth 633.7 contracts (bid:314.6 ask:319.1) — deep
Avg slippage 2.75% — poor
Is now a good time?
Considers earnings proximity,
Slope -10.2% — contango
IV percentile 16% — buyer opportunity
IV kink -2.0pts — no clear event
θ/ν ratio 591.22 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -42% @ 71% consistency — STRONG directional (bearish)
Score 51 (ITM 20% + inst 21%) — moderate institutional
For educational purposes only. Not investment advice.