Options/KTOS

KTOSKratos Defense & Security Solutions, Inc.

Options Analysis Report•GUIDED MISSILES & SPACE VEHICLES & PARTS

Market Cap $9.8B|NASDAQ

● 2026-08-31$52.00

NEUTRAL

Analysis: 2026-08-28 EOD data

1Y -21.3%YTD -34.4%7D -2.0%

Options Vol

5,026

30D

Implied Move

±16.5%

IV Rank

KTOS Options Overview

IV is elevated with unusual activity. Conditions favor premium sellers.

REWARDS

RISK ANALYSIS

Snowflake Analysis

Favorable conditions for premium sellers

Learn

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KTOS Gamma Walls

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KTOS Hedge Radar

Neutral

Full Hedge Radar

Neither score is at an extreme today. Neither axis is a forecast — this is where KTOS sits on protection cost vs. fragility today.

Protection is priced in the cheap band (1.39) — downside puts carry 0.4 IV points LESS than at-the-money, and near-dated vol is priced 11% below far-dated, measured against this name's own rolling 19-trading-day realized moves (485 overlapping windows). Fragility reads neutral (4.52): it is trading 2% above its hedge wall on a wall graded HIGH for reliability, and its realized-vol regime is stable.

Protection cost

1.39/ 10cheap

Basis: cross_sectional

Fragility

4.52/ 10neutral

Basis: per_ticker

Value

Is IV priced right?

5.4

ExpensiveCheap

Measures whether options are cheap, fair, or rich relative to historical and peer

levels.

Risk Checks4/9 checks passed

IV Rank

≤35%

IV Rank 82.8% — elevated vs history

IV/HV Ratio

<1.05x

IV/HV 0.93x — IV ≤ HV

Sector Relative≤50%

Sector percentile 85% — above sector median

Term Structure

<1.1x

Front/Back 0.89x — contango

Skew Normal

<1.25x

Put/Call IV 1.16x — elevated

Absolute IV

<80%

ATM IV 59.0% — normal range

Spread-Adjusted Value

<80%

Effective IV 88.5% (ATM 59.0% + spread 14.8% + bias) — expensive

Execution Efficiency

<3.0%

Total drag 20.57% (spread 14.76% + slippage 5.81%) — high friction

Vega Efficiency

≥5.0

Vega efficiency 0.74 (vega 1.086 / spread 14.76%) — spread drag

Sentiment

Bullish or bearish?

6.5

BearishBullish

Analyzes

put/call ratios

open interest skew

, and flow direction to determine market bias.

Risk ChecksNeutral - Moderate signal (Conviction: +9%, Raw: +4%)

Flow Direction

|net sentiment| ≥25%

Conviction-weighted: +9% (neutral) — Raw: +4%

OI Skew Magnitude

≥15%

|OI skew| 24.0% — call-heavy

Volume-OI Alignment

Same sign, |vol skew| ≥10%

Vol skew +21.7%, OI skew +24.0% — aligned

Conviction Quality

≥2/3 conditions

0-DTE 0%, far-OTM 15%, avg DTE 30

OI Momentum

|change| ≥3%

OI change +0.0% (5d) — stable

Smart Money Flow

|weighted flow| ≥20%

ITM: -15%, ATM: +16%, OTM: -1% — neutral (ITM/ATM divergent)

Sector Relative≤40% or ≥60%

Sector P/C percentile 46% — neutral vs sector

Activity

Unusual activity?

3.4

QuietActive

Detects volume surges,

block trades

, and unusual options activity that may signal moves.

Risk Checks2/8 checks passed

Volume Surge

≥1.5x

Volume 0.5x avg — normal

Turnover Rate

≥15%

Vol/OI 4.6% — normal turnover

Multi-Day Persistence

≥2 days

1 day(s) elevated — may be one-day event

OI Build

≥5%

OI change +10.2% (5d) — building

Sector Relative≥60%

Sector activity percentile 81% — very active vs sector

Trade Quality

≥30%

Large trade volume 8% — mostly retail

Execution Urgency

≥60%

Aggressive execution 24% — patient

Flow Conviction

≥30

Conviction +9 (bullish) — mixed

Liquidity

Can I trade efficiently?

3.2

IlliquidLiquid

Evaluates

bid-ask spreads

, volume depth, and open interest for trade execution quality.

Risk Checks3/8 checks passed

Tradeable Spread

≤5.0%

Spread 14.8% — wide

Adequate OI

≥10,000

OI 108,967 — deep

Active Volume

≥500

Volume 5,026/day — active

Reasonable Cost

≤$0.50

$0.74 to cross — expensive

Strike Coverage

≥5 strikes

0 liquid strikes — limited options

Sector Relative≤40%

Sector spread percentile 91% — much wider than sector

Order Book Depth

≥100 contracts

Depth 268.0 contracts (bid:139.0 ask:129.0) — adequate

Execution Quality

<1.0%

Avg slippage 5.81% — poor

Timing

Is now a good time?

7.3

RiskyFavorable

Considers earnings proximity,

time decay

, and event calendar for optimal entry timing.

Risk Checks6/9 checks passed

Term Structure Clarity

|slope| ≥5%

Slope -10.9% — contango

IV Percentile Clarity

<30 or >70

IV percentile 83% — seller opportunity

Event Detection

≥10pts kink

IV kink -4.8pts — no clear event

Theta/Vega Clarity

<0.5 or >2.0

θ/ν ratio 14.23 — favors income trades

Expiration Distribution

≥3 expirations

5 liquid expirations — flexible

Event Risk

≥60% (safe)

safe window: No events detected

Spread Momentum

<1.2 ratio

Spread ratio 1.00x — stable

Flow Momentum

≥25% strength + ≥50% consistency

Flow +9% @ 55% consistency — unclear

Smart Money Timing

≥40 composite score

Score 38 (ITM 20% + inst 8%) — retail dominated

Directional Strategy Fit

Option Buyers

Long Calls5.7

bullishIV fair, bullish flow

Long Puts4.7

bearishIV fair, bullish flow

Premium Sellers

Cash-Secured Put5.4

bullishIV fair, bullish flow

Covered Call4.3

bearishIV fair, bullish flow

For educational purposes only. Not investment advice.

The Options Desk tracks the move options price into every US earnings report the week of Aug 31, next to how much each stock has actually moved on its past prints — plus the SPY, QQQ and IWM expected ranges and the gamma walls that box them in.

More on KTOS

KTOS gamma walls KTOS max pain KTOS IV rank KTOS options flow