SOThe Southern Company
Options Analysis Report•ELECTRIC SERVICES
Market Cap $106.5B|NYSE
● 2026-04-17$94.51
BULLISH
Analysis: 2026-04-16 EOD data
1Y +4.7%YTD +8.4%7D -2.7%
Options Vol
2,406
30D
Implied Move
±6.3%
IV Rank
39%
SO Options Overview
IV is low. Conditions favor option buyers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
6.8
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 1.9% — cheap vs history
IV/HV Ratio
<1.05xIV/HV 1.40x — IV premium over HV
Sector Relative≤50%
Sector percentile 21% — below sector median
Term Structure
<1.1xFront/Back 1.07x — backwardation
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 21.3% — normal range
Spread-Adjusted Value
<80%Effective IV 58.1% (ATM 21.3% + spread 18.4% + bias) — good value
Execution Efficiency
<3.0%Total drag 23.38% (spread 18.40% + slippage 4.98%) — high friction
Vega Efficiency
≥5.0Vega efficiency 17.22 (vega 31.690 / spread 18.40%) — efficient
Sentiment
Bullish or bearish?
6.9
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksBullish - Strong signal (Conviction: +23%, Raw: +21%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +23% (bullish) — Raw: +21%
OI Skew Magnitude
≥15%|OI skew| 16.7% — call-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +21.9%, OI skew +16.7% — aligned
Conviction Quality
≥2/3 conditions0-DTE 23%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: +100%, ATM: +20%, OTM: +20% — strong bullish (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 50% — neutral vs sector
Activity
Unusual activity?
2.6
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks0/9 checks passed
Volume Surge
≥1.5xVolume 0.6x avg — normal
Turnover Rate
≥15%Vol/OI 2.3% — 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 -3.7% (5d) — unwinding
Sector Relative≥60%
Sector activity percentile 38% — below sector avg
Trade Quality
≥30%Large trade volume 9% — mostly retail
Execution Urgency
≥60%Aggressive execution 33% — patient
Flow Conviction
≥30Conviction +23 (bullish) — mixed
Liquidity
Can I trade efficiently?
3.7
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks4/8 checks passed
Tradeable Spread
≤5.0%Spread 18.4% — wide
Adequate OI
≥10,000OI 103,250 — deep
Active Volume
≥500Volume 2,406/day — adequate
Reasonable Cost
≤$0.50$0.92 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 28% — tighter than sector
Order Book Depth
≥100 contractsDepth 173.60000000000002 contracts (bid:97.4 ask:76.2) — adequate
Execution Quality
<1.0%Avg slippage 4.98% — poor
Timing
Is now a good time?
7.4
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks6/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +6.5% — backwardation
IV Percentile Clarity
<30 or >70IV percentile 2% — buyer opportunity
Event Detection
≥10pts kinkIV kink 0.3pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 2200.70 — favors income trades
Expiration Distribution
≥3 expirations5 liquid expirations — flexible
Event Risk
≥60% (safe)acceptable: Earnings in 13d
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow +23% @ 61% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 39 (ITM 20% + inst 9%) — retail dominated
Directional Strategy Fit
Option Buyers
Long Calls7.0
bullishIV cheap, bullish flow
Long Puts5.1
bearishIV cheap, bullish flow
Premium Sellers
Cash-Secured Put5.2
bullishIV too cheap, bullish flow
Covered Call3.9
bearishIV too cheap, bullish flow
For educational purposes only. Not investment advice.