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 5.2% — cheap vs history
IV/HV 0.71x — IV ≤ HV
Sector percentile 8% — below sector median
Front/Back 0.95x — contango
Put/Call IV 1.16x — elevated
ATM IV 19.5% — normal range
Effective IV 61.8% (ATM 19.5% + spread 21.1% + bias) — good value
Total drag 26.45% (spread 21.15% + slippage 5.30%) — high friction
Vega efficiency 8.34 (vega 17.646 / spread 21.15%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -17% (bearish) — Raw: -26%
|OI skew| 60.9% — call-heavy
Vol skew +45.2%, OI skew +60.9% — aligned
0-DTE 35%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -62%, ATM: +16%, OTM: -79% — strong bearish (ITM/ATM divergent)
Sector P/C percentile 19% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.2x avg — normal
Vol/OI 0.9% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +0.5% (5d) — stable
Sector activity percentile 21% — below sector avg
Large trade volume 0% — mostly retail
Aggressive execution 16% — patient
Conviction -17 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 21.1% — wide
OI 43,133 — adequate
Volume 409/day — thin
$1.06 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 24% — tighter than sector
Depth 220.20000000000002 contracts (bid:58.9 ask:161.3) — adequate
Avg slippage 5.30% — poor
Is now a good time?
Considers earnings proximity,
Slope -5.3% — contango
IV percentile 5% — buyer opportunity
IV kink -1.0pts — no clear event
θ/ν ratio 1316.86 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -17% @ 58% consistency — unclear
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.