IV is low. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 2.1% — cheap vs history
IV/HV 1.44x — IV premium over HV
Sector percentile 0% — below sector median
Front/Back 0.91x — contango
Put/Call IV 1.16x — elevated
ATM IV 21.5% — normal range
Effective IV 32.1% (ATM 21.5% + spread 5.3% + bias) — excellent value
Total drag 10.16% (spread 5.29% + slippage 4.87%) — high friction
Vega efficiency 46.92 (vega 24.822 / spread 5.29%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -14% (bearish) — Raw: -7%
|OI skew| 4.7% — balanced
Vol skew +45.7%, OI skew +4.7% — aligned
0-DTE 30%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +7%, ATM: -9%, OTM: -6% — neutral (ITM/ATM divergent)
Sector P/C percentile 18% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 1.2x avg — normal
Vol/OI 8.6% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +12.1% (5d) — building
Sector activity percentile 78% — active vs sector
Large trade volume 16% — mixed
Aggressive execution 34% — patient
Conviction -14 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 5.3% — wide
OI 177,891 — deep
Volume 15,385/day — active
$0.26 to cross — cheap
2 liquid strikes — limited options
Sector spread percentile 2% — much tighter than sector
Depth 121.30000000000001 contracts (bid:61.6 ask:59.7) — adequate
Avg slippage 4.87% — poor
Is now a good time?
Considers earnings proximity,
Slope -9.3% — contango
IV percentile 2% — buyer opportunity
IV kink -2.2pts — no clear event
θ/ν ratio 137.60 — favors income trades
5 liquid expirations — flexible
safe window: Earnings in 20d (low risk)
Spread ratio 1.00x — stable
Flow -14% @ 57% consistency — unclear
Score 46 (ITM 20% + inst 16%) — moderate institutional
For educational purposes only. Not investment advice.