IV is low with bullish flow and unusual activity. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 5.1% — cheap vs history
IV/HV 1.30x — IV premium over HV
Sector percentile 8% — below sector median
Front/Back 1.09x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 17.0% — normal range
Effective IV 35.6% (ATM 17.0% + spread 9.3% + bias) — excellent value
Total drag 15.55% (spread 9.29% + slippage 6.26%) — high friction
Vega efficiency 66.47 (vega 61.752 / spread 9.29%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -5% (neutral) — Raw: -3%
|OI skew| 33.8% — call-heavy
Vol skew +49.9%, OI skew +33.8% — aligned
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +98%, ATM: -70%, OTM: +0% — strong bullish (ITM/ATM divergent)
Sector P/C percentile 17% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 1.1x avg — normal
Vol/OI 4.3% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change -1.9% (5d) — stable
Sector activity percentile 71% — active vs sector
Large trade volume 44% — institutional presence
Aggressive execution 28% — patient
Conviction -5 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 9.3% — wide
OI 20,733 — adequate
Volume 902/day — adequate
$0.46 to cross — cheap
0 liquid strikes — limited options
Sector spread percentile 24% — tighter than sector
Depth 282.6 contracts (bid:142.2 ask:140.4) — adequate
Avg slippage 6.26% — poor
Is now a good time?
Considers earnings proximity,
Slope +8.5% — backwardation
IV percentile 5% — buyer opportunity
IV kink 2.6pts — no clear event
θ/ν ratio 223.90 — favors income trades
4 liquid expirations — flexible
caution advised: No earnings detected; CPI in 1d (HIGH)
Spread ratio 1.00x — stable
Flow -5% @ 52% consistency — unclear
Score 74 (ITM 20% + inst 44%) — HIGH institutional
For educational purposes only. Not investment advice.