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 3.0% — cheap vs history
IV/HV 1.34x — IV premium over HV
Sector percentile 4% — below sector median
Front/Back 0.92x — contango
Put/Call IV 1.16x — elevated
ATM IV 16.6% — normal range
Effective IV 66.6% (ATM 16.6% + spread 25.0% + bias) — fair
Total drag 37.50% (spread 25.00% + slippage 12.50%) — high friction
Vega efficiency 8.54 (vega 21.341 / spread 25.00%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -100% (strong bearish) — Raw: -100%
|OI skew| 57.6% — call-heavy
Vol skew +100.0%, OI skew +57.6% — aligned
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +0%, ATM: +0%, OTM: -100% — neutral (ITM/ATM divergent)
Sector P/C percentile 50% — neutral 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 +1.6% (5d) — stable
Sector activity percentile 1% — quiet vs sector
Large trade volume 0% — mostly retail
Aggressive execution 100% — highly urgent
Conviction -100 (bearish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 25.0% — wide
OI 1,556 — thin
Volume 1/day — thin
$1.25 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 21% — tighter than sector
Depth 2.0 contracts (bid:1.0 ask:1.0) — thin
Avg slippage 12.50% — poor
Is now a good time?
Considers earnings proximity,
Slope -8.1% — contango
IV percentile 3% — buyer opportunity
IV kink -0.8pts — no clear event
θ/ν ratio 328.84 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -100% @ 100% consistency — STRONG directional (bearish)
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.