IV is low. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 13.2% — cheap vs history
IV/HV 1.29x — IV premium over HV
Sector percentile 15% — below sector median
Front/Back 1.05x — flat
Put/Call IV 1.16x — elevated
ATM IV 26.0% — normal range
Effective IV 41.7% (ATM 26.0% + spread 7.8% + bias) — excellent value
Total drag 21.86% (spread 7.84% + slippage 14.02%) — high friction
Vega efficiency 158.81 (vega 124.506 / spread 7.84%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -2% (neutral) — Raw: -1%
|OI skew| 10.1% — balanced
Vol skew -1.0%, OI skew +10.1% — divergent (opposite)
0-DTE 0%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +15%, ATM: -14%, OTM: +2% — neutral (ITM/ATM divergent)
Sector P/C percentile 59% — bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.7x avg — normal
Vol/OI 5.0% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +1.1% (5d) — stable
Sector activity percentile 87% — very active vs sector
Large trade volume 7% — mostly retail
Aggressive execution 29% — patient
Conviction -2 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 7.8% — wide
OI 456,201 — deep
Volume 22,658/day — active
$0.39 to cross — cheap
0 liquid strikes — limited options
Sector spread percentile 21% — tighter than sector
Depth 166.0 contracts (bid:44.3 ask:121.7) — adequate
Avg slippage 14.02% — poor
Is now a good time?
Considers earnings proximity,
Slope +4.9% — flat/unclear
IV percentile 13% — buyer opportunity
IV kink 2.2pts — no clear event
θ/ν ratio 2121.05 — favors income trades
5 liquid expirations — flexible
caution advised: CPI in 1d (HIGH)
Spread ratio 1.00x — stable
Flow -2% @ 51% consistency — unclear
Score 37 (ITM 20% + inst 7%) — retail dominated
For educational purposes only. Not investment advice.