IV is low with bullish flow. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 10.2% — cheap vs history
IV/HV 0.86x — IV ≤ HV
Sector percentile 16% — below sector median
Front/Back 1.10x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 23.2% — normal range
Effective IV 98.2% (ATM 23.2% + spread 37.5% + bias) — expensive
Total drag 54.30% (spread 37.49% + slippage 16.81%) — high friction
Vega efficiency 4.25 (vega 15.946 / spread 37.49%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +15% (bullish) — Raw: +14%
|OI skew| 23.8% — call-heavy
Vol skew +43.8%, OI skew +23.8% — aligned
0-DTE 22%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +90%, ATM: +20%, OTM: +10% — strong bullish (ITM/ATM aligned)
Sector P/C percentile 20% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.3x avg — normal
Vol/OI 1.0% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +5.2% (5d) — building
Sector activity percentile 23% — below sector avg
Large trade volume 29% — mixed
Aggressive execution 45% — patient
Conviction +15 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 37.5% — wide
OI 314,512 — deep
Volume 3,242/day — adequate
$1.87 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 30% — tighter than sector
Depth 612.4 contracts (bid:361.3 ask:251.1) — deep
Avg slippage 16.81% — poor
Is now a good time?
Considers earnings proximity,
Slope +10.1% — backwardation
IV percentile 10% — buyer opportunity
IV kink 1.6pts — no clear event
θ/ν ratio 1678.48 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +15% @ 58% consistency — unclear
Score 59 (ITM 20% + inst 29%) — moderate institutional
For educational purposes only. Not investment advice.