ITWIllinois Tool Works Inc.
Options Analysis Report•GENERAL INDUSTRIAL MACHINERY & EQUIPMENT
Market Cap $78.4B|NYSE
● 2026-04-17$272.26
BULLISH
Analysis: 2026-04-16 EOD data
1Y +19.6%YTD +9.1%7D +0.6%
Options Vol
635
30D
Implied Move
±8.2%
IV Rank
37%
ITW Options Overview
IV is low with bullish flow. Conditions favor option buyers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
7.6
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 12.7% — cheap vs history
IV/HV Ratio
<1.05xIV/HV 1.09x — IV premium over HV
Sector Relative≤50%
Sector percentile 6% — below sector median
Term Structure
<1.1xFront/Back 1.16x — backwardation
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 26.6% — normal range
Spread-Adjusted Value
<80%Effective IV 38.3% (ATM 26.6% + spread 5.8% + bias) — excellent value
Execution Efficiency
<3.0%Total drag 8.62% (spread 5.83% + slippage 2.79%) — high friction
Vega Efficiency
≥5.0Vega efficiency 6.63 (vega 3.866 / spread 5.83%) — acceptable
Sentiment
Bullish or bearish?
7.9
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksVery Bullish - Strong signal (Conviction: +39%, Raw: +31%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +39% (strong bullish) — Raw: +31%
OI Skew Magnitude
≥15%|OI skew| 29.6% — call-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +41.1%, OI skew +29.6% — aligned
Conviction Quality
≥2/3 conditions0-DTE 6%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: +28%, ATM: +59%, OTM: -5% — strong bullish (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 29% — very bullish vs sector
Activity
Unusual activity?
3.4
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks1/9 checks passed
Volume Surge
≥1.5xVolume 0.5x avg — normal
Turnover Rate
≥15%Vol/OI 4.9% — 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 +2.2% (5d) — building
Sector Relative≥60%
Sector activity percentile 55% — neutral vs sector
Trade Quality
≥30%Large trade volume 0% — mostly retail
Execution Urgency
≥60%Aggressive execution 37% — patient
Flow Conviction
≥30Conviction +39 (bullish) — moderate
Liquidity
Can I trade efficiently?
5.0
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks4/8 checks passed
Tradeable Spread
≤5.0%Spread 5.8% — wide
Adequate OI
≥10,000OI 13,077 — adequate
Active Volume
≥500Volume 635/day — adequate
Reasonable Cost
≤$0.50$0.29 to cross — cheap
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 9% — much tighter than sector
Order Book Depth
≥100 contractsDepth 30.1 contracts (bid:13.6 ask:16.5) — thin
Execution Quality
<1.0%Avg slippage 2.79% — poor
Timing
Is now a good time?
7.6
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks7/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +15.9% — backwardation
IV Percentile Clarity
<30 or >70IV percentile 13% — buyer opportunity
Event Detection
≥10pts kinkIV kink 3.3pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 5.48 — favors income trades
Expiration Distribution
≥3 expirations3 liquid expirations — flexible
Event Risk
≥60% (safe)acceptable: Earnings in 13d
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow +39% @ 69% consistency — moderate (bullish)
Smart Money Timing
≥40 composite scoreScore 30 (ITM 20% + inst 0%) — retail dominated
Directional Strategy Fit
Option Buyers
Long Calls7.7
bullishIV cheap, bullish flow
Long Puts5.3
bearishIV cheap, bullish flow
Premium Sellers
Cash-Secured Put5.6
bullishIV too cheap, bullish flow
Covered Call3.6
bearishIV too cheap, bullish flow
For educational purposes only. Not investment advice.