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 4.3% — cheap vs history
IV/HV 0.97x — IV ≤ HV
Sector percentile 7% — below sector median
Front/Back 0.85x — contango
Put/Call IV 1.16x — elevated
ATM IV 18.3% — normal range
Effective IV 53.2% (ATM 18.3% + spread 17.5% + bias) — good value
Total drag 23.98% (spread 17.47% + slippage 6.51%) — high friction
Vega efficiency 7.74 (vega 13.522 / spread 17.47%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -26% (bearish) — Raw: -22%
|OI skew| 4.9% — balanced
Vol skew +33.0%, OI skew +4.9% — aligned
0-DTE 29%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -36%, ATM: -23%, OTM: -19% — strong bearish (ITM/ATM aligned)
Sector P/C percentile 24% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.7x avg — normal
Vol/OI 6.7% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +6.3% (5d) — building
Sector activity percentile 72% — active vs sector
Large trade volume 11% — mostly retail
Aggressive execution 30% — patient
Conviction -26 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 17.5% — wide
OI 35,841 — adequate
Volume 2,408/day — adequate
$0.87 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 23% — tighter than sector
Depth 768.5999999999999 contracts (bid:368.9 ask:399.7) — deep
Avg slippage 6.51% — poor
Is now a good time?
Considers earnings proximity,
Slope -14.8% — contango
IV percentile 4% — buyer opportunity
IV kink -1.6pts — no clear event
θ/ν ratio 734.90 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -26% @ 63% consistency — moderate (bearish)
Score 41 (ITM 20% + inst 11%) — moderate institutional
For educational purposes only. Not investment advice.