LIILennox International Inc.
Options Analysis Report•AIR-COND & WARM AIR HEATG EQUIP & COMM & INDL REFRIG EQUIP
Market Cap $17.0B|NYSE
● 2026-04-17$487.11
NEUTRAL
Analysis: 2026-04-16 EOD data
1Y -10.0%YTD -2.4%7D -3.6%
Options Vol
41
30D
Implied Move
±13.2%
IV Rank
12%
LII Options Overview
IV is elevated with bearish flow. No clear edge detected.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
5.8
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks5/9 checks passed
IV Rank
≤35%IV Rank 76.9% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 0.82x — IV ≤ HV
Sector Relative≤50%
Sector percentile 86% — above sector median
Term Structure
<1.1xFront/Back 1.14x — backwardation
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 45.6% — normal range
Spread-Adjusted Value
<80%Effective IV 68.7% (ATM 45.6% + spread 11.5% + bias) — fair
Execution Efficiency
<3.0%Total drag 23.80% (spread 11.54% + slippage 12.26%) — high friction
Vega Efficiency
≥5.0Vega efficiency 45.40 (vega 52.395 / spread 11.54%) — efficient
Sentiment
Bullish or bearish?
5.6
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksVery Bullish - Strong signal (Conviction: +61%, Raw: +42%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +61% (strong bullish) — Raw: +42%
OI Skew Magnitude
≥15%|OI skew| 19.3% — put-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew -61.0%, OI skew -19.3% — aligned
Conviction Quality
≥2/3 conditions0-DTE 12%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: +0%, ATM: +62%, OTM: +7% — bullish (ITM/ATM divergent)
Sector Relative≤40% or ≥60%
Sector P/C percentile 93% — very bearish vs sector
Activity
Unusual activity?
4.0
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks3/9 checks passed
Volume Surge
≥1.5xVolume 0.6x avg — normal
Turnover Rate
≥15%Vol/OI 2.4% — normal turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change +31.2% (5d) — building
Sector Relative≥60%
Sector activity percentile 28% — below sector avg
Trade Quality
≥30%Large trade volume 0% — mostly retail
Execution Urgency
≥60%Aggressive execution 75% — urgent
Flow Conviction
≥30Conviction +61 (bullish) — strong conviction
Liquidity
Can I trade efficiently?
2.6
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks0/8 checks passed
Tradeable Spread
≤5.0%Spread 11.5% — wide
Adequate OI
≥10,000OI 1,747 — thin
Active Volume
≥500Volume 41/day — thin
Reasonable Cost
≤$0.50$0.58 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 87% — much wider than sector
Order Book Depth
≥100 contractsDepth 13.8 contracts (bid:7.8 ask:6.0) — thin
Execution Quality
<1.0%Avg slippage 12.26% — poor
Timing
Is now a good time?
7.5
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks7/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +14.4% — backwardation
IV Percentile Clarity
<30 or >70IV percentile 77% — seller opportunity
Event Detection
≥10pts kinkIV kink 5.1pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 118.30 — favors income trades
Expiration Distribution
≥3 expirations3 liquid expirations — flexible
Event Risk
≥60% (safe)acceptable: Earnings in 12d
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow +61% @ 81% consistency — STRONG directional (bullish)
Smart Money Timing
≥40 composite scoreScore 30 (ITM 20% + inst 0%) — retail dominated
Directional Strategy Fit
Option Buyers
Long Calls5.5
bullishIV fair, mixed flow
Long Puts5.1
bearishIV fair, mixed flow
Premium Sellers
Cash-Secured Put4.9
bullishIV fair, mixed flow
Covered Call4.4
bearishIV fair, mixed flow
For educational purposes only. Not investment advice.