IV is low with unusual activity. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 2.6% — cheap vs history
IV/HV 1.00x — IV ≤ HV
Sector percentile 42% — below sector median
Front/Back 0.85x — contango
Put/Call IV 1.16x — elevated
ATM IV 16.1% — normal range
Effective IV 18.4% (ATM 16.1% + spread 1.1% + bias) — excellent value
Total drag 2.20% (spread 1.13% + slippage 1.07%) — acceptable
Vega efficiency 12296.16 (vega 1389.466 / spread 1.13%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +0% (neutral) — Raw: -9%
|OI skew| 19.2% — put-heavy
Vol skew -17.5%, OI skew -19.2% — aligned
0-DTE 30%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +0%, ATM: +0%, OTM: +0% — neutral (ITM/ATM divergent)
Sector P/C percentile 84% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 1.8x avg — elevated
Vol/OI 7.5% — normal turnover
Top 3 strikes = 50% — dispersed
3 day(s) elevated — sustained
OI change +7.7% (5d) — building
Sector activity percentile 40% — below sector avg
Large trade volume 58% — heavy institutional
Aggressive execution 32% — patient
Conviction +0 (neutral) — mixed
Can I trade efficiently?
Evaluates
Spread 1.1% — tight
OI 16,694,873 — deep
Volume 1,256,918/day — active
$0.06 to cross — cheap
91 liquid strikes — good coverage
Sector spread percentile 45% — neutral vs sector
Depth 296.0 contracts (bid:150.4 ask:145.6) — adequate
Avg slippage 1.07% — fair
Is now a good time?
Considers earnings proximity,
Slope -14.5% — contango
IV percentile 3% — buyer opportunity
IV kink -1.7pts — no clear event
θ/ν ratio 906.55 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +0% @ 54% consistency — unclear
Score 88 (ITM 20% + inst 58%) — HIGH institutional
For educational purposes only. Not investment advice.