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 2.6% — cheap vs history
IV/HV 0.83x — IV ≤ HV
Sector percentile 4% — below sector median
Front/Back 0.82x — contango
Put/Call IV 1.16x — elevated
ATM IV 16.2% — normal range
Effective IV 58.0% (ATM 16.2% + spread 20.9% + bias) — good value
Total drag 28.00% (spread 20.92% + slippage 7.08%) — high friction
Vega efficiency 0.00 (vega 0.000 / spread 20.92%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: -18% (bearish) — Raw: -18%
|OI skew| 31.8% — call-heavy
Vol skew +39.3%, OI skew +31.8% — aligned
0-DTE 25%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +10%, ATM: +0%, OTM: -37% — neutral (ITM/ATM aligned)
Sector P/C percentile 21% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.8x avg — normal
Vol/OI 5.5% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +5.4% (5d) — building
Sector activity percentile 66% — active vs sector
Large trade volume 12% — mostly retail
Aggressive execution 24% — patient
Conviction -18 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 20.9% — wide
OI 69,622 — deep
Volume 3,812/day — adequate
$1.05 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 20% — tighter than sector
Depth 295.8 contracts (bid:145.5 ask:150.3) — adequate
Avg slippage 7.08% — poor
Is now a good time?
Considers earnings proximity,
Slope -17.5% — contango
IV percentile 3% — buyer opportunity
IV kink -1.3pts — no clear event
θ/ν ratio 1.00 — favors mixed
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -18% @ 59% consistency — unclear
Score 42 (ITM 20% + inst 12%) — moderate institutional
For educational purposes only. Not investment advice.