SHWThe Sherwin-Williams Company
Options Analysis Report•RETAIL-BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY
Market Cap $85.5B|NYSE
● 2026-04-17$345.55
BEARISH
Analysis: 2026-04-16 EOD data
1Y +7.2%YTD +5.4%7D +2.8%
Options Vol
1,892
30D
Implied Move
±9.0%
IV Rank
47%
SHW Options Overview
IV is low with bearish flow. Conditions favor option buyers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
7.3
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks7/9 checks passed
IV Rank
≤35%IV Rank 22.3% — cheap vs history
IV/HV Ratio
<1.05xIV/HV 0.88x — IV ≤ HV
Sector Relative≤50%
Sector percentile 15% — below sector median
Term Structure
<1.1xFront/Back 1.13x — backwardation
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 29.2% — normal range
Spread-Adjusted Value
<80%Effective IV 63.0% (ATM 29.2% + spread 16.9% + bias) — good value
Execution Efficiency
<3.0%Total drag 22.87% (spread 16.92% + slippage 5.95%) — high friction
Vega Efficiency
≥5.0Vega efficiency 74.24 (vega 125.611 / spread 16.92%) — efficient
Sentiment
Bullish or bearish?
4.3
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksNeutral - Moderate signal (Conviction: -2%, Raw: -6%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: -2% (neutral) — Raw: -6%
OI Skew Magnitude
≥15%|OI skew| 22.2% — call-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew -67.3%, OI skew +22.2% — divergent (opposite)
Conviction Quality
≥2/3 conditions0-DTE 77%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: -75%, ATM: -17%, OTM: -1% — strong bearish (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 95% — very bearish vs sector
Activity
Unusual activity?
4.7
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks2/9 checks passed
Volume Surge
≥1.5xVolume 1.3x avg — normal
Turnover Rate
≥15%Vol/OI 9.9% — 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 -12.5% (5d) — unwinding
Sector Relative≥60%
Sector activity percentile 85% — very active vs sector
Trade Quality
≥30%Large trade volume 71% — heavy institutional
Execution Urgency
≥60%Aggressive execution 33% — patient
Flow Conviction
≥30Conviction -2 (bearish) — mixed
Liquidity
Can I trade efficiently?
3.4
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks3/8 checks passed
Tradeable Spread
≤5.0%Spread 16.9% — wide
Adequate OI
≥10,000OI 19,189 — adequate
Active Volume
≥500Volume 1,892/day — adequate
Reasonable Cost
≤$0.50$0.85 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 15% — much tighter than sector
Order Book Depth
≥100 contractsDepth 34.0 contracts (bid:16.6 ask:17.4) — thin
Execution Quality
<1.0%Avg slippage 5.95% — poor
Timing
Is now a good time?
7.1
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks7/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +12.9% — backwardation
IV Percentile Clarity
<30 or >70IV percentile 22% — buyer opportunity
Event Detection
≥10pts kinkIV kink 4.1pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 1917.73 — favors income trades
Expiration Distribution
≥3 expirations3 liquid expirations — flexible
Event Risk
≥60% (safe)acceptable: Earnings in 11d
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow -2% @ 51% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 101 (ITM 20% + inst 71%) — HIGH institutional
Directional Strategy Fit
Option Buyers
Long Calls5.7
bullishIV cheap, mixed flow
Long Puts6.7
bearishIV cheap, mixed flow
Premium Sellers
Cash-Secured Put4.0
bullishIV too cheap, mixed flow
Covered Call4.5
bearishIV too cheap, mixed flow
For educational purposes only. Not investment advice.