Options/SWBI

SWBISmith & Wesson Brands, Inc. Common Stock

Options Analysis Report•ORDNANCE & ACCESSORIES, (NO VEHICLES/GUIDED MISSILES)

Market Cap $573M|NASDAQ

● 2026-08-31$12.78

NEUTRAL

Analysis: 2026-08-28 EOD data

1Y +57.2%YTD +28.1%7D -6.4%

Options Vol

342

30D

Implied Move

±19.4%

IV Rank

27%

SWBI Options Overview

IV is elevated. No clear edge detected.

REWARDS

RISK ANALYSIS

Snowflake Analysis

Favorable conditions for premium sellers

Learn

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SWBI Gamma Walls

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Value

Is IV priced right?

2.4

ExpensiveCheap

Measures whether options are cheap, fair, or rich relative to historical and peer

levels.

Risk Checks2/9 checks passed

IV Rank

≤35%

IV Rank 78.6% — elevated vs history

IV/HV Ratio

<1.05x

IV/HV 2.48x — IV premium over HV

Sector Relative≤50%

Sector percentile 82% — above sector median

Term Structure

<1.1x

Front/Back 1.43x — backwardation

Skew Normal

<1.25x

Put/Call IV 1.16x — elevated

Absolute IV

<80%

ATM IV 52.8% — normal range

Spread-Adjusted Value

<80%

Effective IV 113.5% (ATM 52.8% + spread 30.4% + bias) — expensive

Execution Efficiency

<3.0%

Total drag 38.65% (spread 30.37% + slippage 8.28%) — high friction

Vega Efficiency

≥5.0

Vega efficiency 1.23 (vega 3.743 / spread 30.37%) — spread drag

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: -1%, Raw: +10%)

Flow Direction

|net sentiment| ≥25%

Conviction-weighted: -1% (neutral) — Raw: +10%

OI Skew Magnitude

≥15%

|OI skew| 53.5% — call-heavy

Volume-OI Alignment

Same sign, |vol skew| ≥10%

Vol skew -49.7%, OI skew +53.5% — divergent (opposite)

Conviction Quality

≥2/3 conditions

0-DTE 0%, far-OTM 15%, avg DTE 30

OI Momentum

|change| ≥3%

OI change +0.0% (5d) — stable

Smart Money Flow

|weighted flow| ≥20%

ITM: -97%, ATM: +30%, OTM: +75% — strong bearish (ITM/ATM divergent)

Sector Relative≤40% or ≥60%

Sector P/C percentile 91% — very bearish vs sector

Activity

Unusual activity?

4.7

QuietActive

Detects volume surges,

block trades

, and unusual options activity that may signal moves.

Risk Checks2/8 checks passed

Volume Surge

≥1.5x

Volume 1.9x avg — elevated

Turnover Rate

≥15%

Vol/OI 1.8% — normal turnover

Multi-Day Persistence

≥2 days

2 day(s) elevated — sustained

OI Build

≥5%

OI change +4.6% (5d) — building

Sector Relative≥60%

Sector activity percentile 54% — neutral vs sector

Trade Quality

≥30%

Large trade volume 0% — mostly retail

Execution Urgency

≥60%

Aggressive execution 23% — patient

Flow Conviction

≥30

Conviction -1 (bearish) — mixed

Liquidity

Can I trade efficiently?

2.8

IlliquidLiquid

Evaluates

bid-ask spreads

, volume depth, and open interest for trade execution quality.

Risk Checks2/8 checks passed

Tradeable Spread

≤5.0%

Spread 30.4% — wide

Adequate OI

≥10,000

OI 18,815 — adequate

Active Volume

≥500

Volume 342/day — thin

Reasonable Cost

≤$0.50

$1.52 to cross — expensive

Strike Coverage

≥5 strikes

0 liquid strikes — limited options

Sector Relative≤40%

Sector spread percentile 89% — much wider than sector

Order Book Depth

≥100 contracts

Depth 562.0999999999999 contracts (bid:296.7 ask:265.4) — deep

Execution Quality

<1.0%

Avg slippage 8.28% — poor

Timing

Is now a good time?

6.8

RiskyFavorable

Considers earnings proximity,

time decay

, and event calendar for optimal entry timing.

Risk Checks6/9 checks passed

Term Structure Clarity

|slope| ≥5%

Slope +43.3% — backwardation

IV Percentile Clarity

<30 or >70

IV percentile 79% — seller opportunity

Event Detection

≥10pts kink

IV kink 16.9pts — event priced

Theta/Vega Clarity

<0.5 or >2.0

θ/ν ratio 796.40 — favors income trades

Expiration Distribution

≥3 expirations

3 liquid expirations — flexible

Event Risk

≥60% (safe)

HIGH RISK: Earnings in 3d (HIGH RISK)

Spread Momentum

<1.2 ratio

Spread ratio 1.00x — stable

Flow Momentum

≥25% strength + ≥50% consistency

Flow -1% @ 51% consistency — unclear

Smart Money Timing

≥40 composite score

Score 30 (ITM 20% + inst 0%) — retail dominated

Directional Strategy Fit

Option Buyers

Long Calls3.8

bullishIV expensive, mixed flow

Long Puts4.2

bearishIV expensive, mixed flow

Premium Sellers

Cash-Secured Put5.4

bullishIV rich premium, mixed flow

Covered Call5.9

bearishIV rich premium, mixed flow

For educational purposes only. Not investment advice.

The Options Desk tracks the move options price into every US earnings report the week of Aug 31, next to how much each stock has actually moved on its past prints — plus the SPY, QQQ and IWM expected ranges and the gamma walls that box them in.

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