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 0.6% — cheap vs history
IV/HV 1.86x — IV premium over HV
Sector percentile 1% — below sector median
Front/Back 1.02x — flat
Put/Call IV 1.16x — elevated
ATM IV 8.0% — normal range
Effective IV 47.4% (ATM 8.0% + spread 19.7% + bias) — excellent value
Total drag 21.92% (spread 19.72% + slippage 2.20%) — high friction
Vega efficiency 0.00 (vega 0.000 / spread 19.72%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: -72% (strong bearish) — Raw: -38%
|OI skew| 50.8% — put-heavy
Vol skew +9.1%, OI skew -50.8% — divergent (opposite)
0-DTE 23%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +0%, ATM: -38%, OTM: +0% — bearish (ITM/ATM divergent)
Sector P/C percentile 29% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.1x avg — normal
Vol/OI 0.1% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change -0.9% (5d) — stable
Sector activity percentile 4% — quiet vs sector
Large trade volume 0% — mostly retail
Aggressive execution 33% — patient
Conviction -72 (bearish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 19.7% — wide
OI 15,027 — adequate
Volume 22/day — thin
$0.99 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 18% — much tighter than sector
Depth 89.1 contracts (bid:67.8 ask:21.3) — thin
Avg slippage 2.20% — poor
Is now a good time?
Considers earnings proximity,
Slope +1.7% — flat/unclear
IV percentile 1% — buyer opportunity
IV kink 0.4pts — no clear event
θ/ν ratio 1.00 — favors mixed
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -72% @ 85% consistency — STRONG directional (bearish)
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.