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 8.8% — cheap vs history
IV/HV 1.07x — IV premium over HV
Sector percentile 14% — below sector median
Front/Back 0.93x — contango
Put/Call IV 1.16x — elevated
ATM IV 22.3% — normal range
Effective IV 138.7% (ATM 22.3% + spread 58.2% + bias) — expensive
Total drag 61.81% (spread 58.19% + slippage 3.62%) — high friction
Vega efficiency 1.38 (vega 8.026 / spread 58.19%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: -81% (strong bearish) — Raw: -78%
|OI skew| 65.7% — call-heavy
Vol skew +70.7%, OI skew +65.7% — aligned
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +0%, ATM: +33%, OTM: -100% — bullish (ITM/ATM divergent)
Sector P/C percentile 11% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.4x avg — normal
Vol/OI 0.4% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +5.7% (5d) — building
Sector activity percentile 9% — quiet vs sector
Large trade volume 0% — mostly retail
Aggressive execution 10% — patient
Conviction -81 (bearish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 58.2% — wide
OI 10,785 — adequate
Volume 41/day — thin
$2.91 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 29% — tighter than sector
Depth 229.2 contracts (bid:131.5 ask:97.7) — adequate
Avg slippage 3.62% — poor
Is now a good time?
Considers earnings proximity,
Slope -6.8% — contango
IV percentile 9% — buyer opportunity
IV kink -0.8pts — no clear event
θ/ν ratio 285.62 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -81% @ 91% consistency — STRONG directional (bearish)
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.