IV is low with bullish flow. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 4.8% — cheap vs history
IV/HV 0.79x — IV ≤ HV
Sector percentile 8% — below sector median
Front/Back 0.87x — contango
Put/Call IV 1.16x — elevated
ATM IV 18.9% — normal range
Effective IV 72.6% (ATM 18.9% + spread 26.9% + bias) — fair
Total drag 34.87% (spread 26.86% + slippage 8.01%) — high friction
Vega efficiency 1.77 (vega 4.766 / spread 26.86%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +9% (neutral) — Raw: +18%
|OI skew| 55.0% — call-heavy
Vol skew +50.6%, OI skew +55.0% — aligned
0-DTE 6%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +57%, ATM: -30%, OTM: +31% — bullish (ITM/ATM divergent)
Sector P/C percentile 17% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.3x avg — normal
Vol/OI 2.1% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change -9.6% (5d) — unwinding
Sector activity percentile 38% — below sector avg
Large trade volume 0% — mostly retail
Aggressive execution 32% — patient
Conviction +9 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 26.9% — wide
OI 16,417 — adequate
Volume 352/day — thin
$1.34 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 23% — tighter than sector
Depth 551.5999999999999 contracts (bid:211.2 ask:340.4) — deep
Avg slippage 8.01% — poor
Is now a good time?
Considers earnings proximity,
Slope -13.2% — contango
IV percentile 5% — buyer opportunity
IV kink -1.8pts — no clear event
θ/ν ratio 560.71 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +9% @ 54% consistency — unclear
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.