IV is low with 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 1.6% — cheap vs history
IV/HV 0.93x — IV ≤ HV
Sector percentile 2% — below sector median
Front/Back 0.73x — contango
Put/Call IV 1.16x — elevated
ATM IV 11.9% — normal range
Effective IV 109.4% (ATM 11.9% + spread 48.8% + bias) — expensive
Total drag 58.37% (spread 48.77% + slippage 9.60%) — high friction
Vega efficiency 0.11 (vega 0.554 / spread 48.77%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +50% (strong bullish) — Raw: +43%
|OI skew| 9.5% — balanced
Vol skew +12.1%, OI skew +9.5% — aligned
0-DTE 11%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +0%, ATM: +0%, OTM: +68% — neutral (ITM/ATM divergent)
Sector P/C percentile 28% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 1.1x avg — normal
Vol/OI 5.9% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +5.6% (5d) — building
Sector activity percentile 68% — active vs sector
Large trade volume 16% — mixed
Aggressive execution 17% — patient
Conviction +50 (bullish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 48.8% — wide
OI 26,664 — adequate
Volume 1,573/day — adequate
$2.44 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 19% — much tighter than sector
Depth 212.7 contracts (bid:102.1 ask:110.6) — adequate
Avg slippage 9.60% — poor
Is now a good time?
Considers earnings proximity,
Slope -27.3% — contango
IV percentile 2% — buyer opportunity
IV kink -2.3pts — no clear event
θ/ν ratio 11.19 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +50% @ 75% consistency — STRONG directional (bullish)
Score 46 (ITM 20% + inst 16%) — moderate institutional
For educational purposes only. Not investment advice.