VELVelocity Financial, Inc.
Options Analysis Report•FINANCE SERVICES
Market Cap $689M|NYSE
● 2026-06-12$17.56
BEARISH
Analysis: 2026-06-11 EOD data
1Y -8.6%YTD -10.1%7D +0.6%
Options Vol
3,288
30D
Implied Move
±8.6%
IV Rank
24%
VEL Options Overview
IV is elevated with bearish flow and unusual activity. Conditions favor premium sellers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
2.7
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks2/9 checks passed
IV Rank
≤35%IV Rank 78.8% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 3.39x — IV premium over HV
Sector Relative≤50%
Sector percentile 87% — above sector median
Term Structure
<1.1xFront/Back 2.80x — backwardation
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 64.0% — normal range
Spread-Adjusted Value
<80%Effective IV 190.6% (ATM 64.0% + spread 63.3% + bias) — expensive
Execution Efficiency
<3.0%Total drag 90.95% (spread 63.29% + slippage 27.66%) — high friction
Vega Efficiency
≥5.0Vega efficiency 0.77 (vega 4.891 / spread 63.29%) — spread drag
Sentiment
Bullish or bearish?
3.0
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksBearish - Strong signal (Conviction: -15%, Raw: +0%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: -15% (bearish) — Raw: +0%
OI Skew Magnitude
≥15%|OI skew| 53.3% — put-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew -98.1%, OI skew -53.3% — aligned
Conviction Quality
≥2/3 conditions0-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: +1%, ATM: -100%, OTM: -26% — strong bearish (ITM/ATM divergent)
Sector Relative≤40% or ≥60%
Sector P/C percentile 100% — very bearish vs sector
Activity
Unusual activity?
6.2
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks4/9 checks passed
Volume Surge
≥1.5xVolume 4.8x avg — hot
Turnover Rate
≥15%Vol/OI 19.3% — high turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change -0.8% (5d) — stable
Sector Relative≥60%
Sector activity percentile 94% — very active vs sector
Trade Quality
≥30%Large trade volume 97% — heavy institutional
Execution Urgency
≥60%Aggressive execution 38% — patient
Flow Conviction
≥30Conviction -15 (bearish) — mixed
Liquidity
Can I trade efficiently?
3.0
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks3/8 checks passed
Tradeable Spread
≤5.0%Spread 63.3% — wide
Adequate OI
≥10,000OI 17,072 — adequate
Active Volume
≥500Volume 3,288/day — adequate
Reasonable Cost
≤$0.50$3.16 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 89% — much wider than sector
Order Book Depth
≥100 contractsDepth 115.5 contracts (bid:20.2 ask:95.3) — adequate
Execution Quality
<1.0%Avg slippage 27.66% — poor
Timing
Is now a good time?
7.5
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks8/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +180.1% — backwardation
IV Percentile Clarity
<30 or >70IV percentile 79% — seller opportunity
Event Detection
≥10pts kinkIV kink 75.9pts — event priced
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 719.21 — favors income trades
Expiration Distribution
≥3 expirations4 liquid expirations — flexible
Event Risk
≥60% (safe)acceptable: No earnings detected; FOMC in 5d
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow -15% @ 58% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 127 (ITM 20% + inst 97%) — HIGH institutional
Directional Strategy Fit
Option Buyers
Long Calls3.5
bullishIV expensive, bearish flow
Long Puts5.0
bearishIV expensive, bearish flow
Premium Sellers
Cash-Secured Put5.0
bullishIV rich premium, bearish flow
Covered Call6.6
bearishIV rich premium, bearish flow
For educational purposes only. Not investment advice.