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 20.3% — cheap vs history
IV/HV 1.24x — IV premium over HV
Sector percentile 30% — below sector median
Front/Back 0.73x — contango
Put/Call IV 1.16x — elevated
ATM IV 28.2% — normal range
Effective IV 40.7% (ATM 28.2% + spread 6.2% + bias) — excellent value
Total drag 9.76% (spread 6.25% + slippage 3.51%) — high friction
Vega efficiency 9.02 (vega 5.638 / spread 6.25%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -2% (neutral) — Raw: +3%
|OI skew| 11.1% — balanced
Vol skew +27.2%, OI skew +11.1% — aligned
0-DTE 15%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -23%, ATM: -7%, OTM: +13% — bearish (ITM/ATM aligned)
Sector P/C percentile 27% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 1.0x avg — normal
Vol/OI 6.6% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +5.2% (5d) — building
Sector activity percentile 72% — active vs sector
Large trade volume 27% — mixed
Aggressive execution 43% — patient
Conviction -2 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 6.2% — wide
OI 268,792 — deep
Volume 17,689/day — active
$0.31 to cross — cheap
1 liquid strikes — limited options
Sector spread percentile 41% — neutral vs sector
Depth 238.8 contracts (bid:120.7 ask:118.1) — adequate
Avg slippage 3.51% — poor
Is now a good time?
Considers earnings proximity,
Slope -27.2% — contango
IV percentile 20% — buyer opportunity
IV kink -5.5pts — no clear event
θ/ν ratio 417.63 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -2% @ 51% consistency — unclear
Score 57 (ITM 20% + inst 27%) — moderate institutional
For educational purposes only. Not investment advice.