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 2.8% — cheap vs history
IV/HV 1.12x — IV premium over HV
Sector percentile 4% — below sector median
Front/Back 0.88x — contango
Put/Call IV 1.16x — elevated
ATM IV 16.5% — normal range
Effective IV 60.4% (ATM 16.5% + spread 21.9% + bias) — good value
Total drag 29.42% (spread 21.94% + slippage 7.48%) — high friction
Vega efficiency 30.61 (vega 67.155 / spread 21.94%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +17% (bullish) — Raw: +9%
|OI skew| 38.8% — put-heavy
Vol skew +77.2%, OI skew -38.8% — divergent (opposite)
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +100%, ATM: -100%, OTM: +5% — bullish (ITM/ATM divergent)
Sector P/C percentile 9% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.1x avg — normal
Vol/OI 0.5% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change -38.2% (5d) — unwinding
Sector activity percentile 11% — quiet vs sector
Large trade volume 0% — mostly retail
Aggressive execution 15% — patient
Conviction +17 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 21.9% — wide
OI 16,084 — adequate
Volume 79/day — thin
$1.10 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 21% — tighter than sector
Depth 179.8 contracts (bid:154.0 ask:25.8) — adequate
Avg slippage 7.48% — poor
Is now a good time?
Considers earnings proximity,
Slope -12.2% — contango
IV percentile 3% — buyer opportunity
IV kink -1.6pts — no clear event
θ/ν ratio 1946.52 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +17% @ 59% consistency — unclear
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.