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 18.7% — cheap vs history
IV/HV 1.65x — IV premium over HV
Sector percentile 29% — below sector median
Front/Back 1.11x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 28.3% — normal range
Effective IV 83.1% (ATM 28.3% + spread 27.4% + bias) — expensive
Total drag 34.68% (spread 27.40% + slippage 7.28%) — high friction
Vega efficiency 9.34 (vega 25.580 / spread 27.40%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +5% (neutral) — Raw: -2%
|OI skew| 11.0% — balanced
Vol skew -3.2%, OI skew -11.0% — weak (same direction)
0-DTE 16%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +46%, ATM: -59%, OTM: +27% — neutral (ITM/ATM divergent)
Sector P/C percentile 66% — bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.8x avg — normal
Vol/OI 2.1% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +2.5% (5d) — building
Sector activity percentile 21% — below sector avg
Large trade volume 9% — mostly retail
Aggressive execution 14% — patient
Conviction +5 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 27.4% — wide
OI 82,426 — deep
Volume 1,744/day — adequate
$1.37 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 32% — tighter than sector
Depth 122.89999999999999 contracts (bid:75.6 ask:47.3) — adequate
Avg slippage 7.28% — poor
Is now a good time?
Considers earnings proximity,
Slope +10.6% — backwardation
IV percentile 19% — buyer opportunity
IV kink 2.7pts — no clear event
θ/ν ratio 1126.86 — favors income trades
3 liquid expirations — flexible
safe window: Earnings in 18d (low risk)
Spread ratio 1.00x — stable
Flow +5% @ 52% consistency — unclear
Score 39 (ITM 20% + inst 9%) — retail dominated
For educational purposes only. Not investment advice.