IV is low with bullish flow. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 2.8% — cheap vs history
IV/HV 0.86x — IV ≤ HV
Sector percentile 4% — below sector median
Front/Back 0.79x — contango
Put/Call IV 1.16x — elevated
ATM IV 16.5% — normal range
Effective IV 21.9% (ATM 16.5% + spread 2.7% + bias) — excellent value
Total drag 6.03% (spread 2.70% + slippage 3.33%) — high friction
Vega efficiency 190.12 (vega 51.331 / spread 2.70%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +13% (bullish) — Raw: +12%
|OI skew| 21.2% — call-heavy
Vol skew +62.0%, OI skew +21.2% — aligned
0-DTE 59%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +0%, ATM: +15%, OTM: +4% — neutral (ITM/ATM aligned)
Sector P/C percentile 13% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 1.1x avg — normal
Vol/OI 10.4% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +16.2% (5d) — building
Sector activity percentile 82% — very active vs sector
Large trade volume 19% — mixed
Aggressive execution 18% — patient
Conviction +13 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 2.7% — acceptable
OI 107,559 — deep
Volume 11,139/day — active
$0.14 to cross — cheap
37 liquid strikes — good coverage
Sector spread percentile 21% — tighter than sector
Depth 316.70000000000005 contracts (bid:157.9 ask:158.8) — adequate
Avg slippage 3.33% — poor
Is now a good time?
Considers earnings proximity,
Slope -20.7% — contango
IV percentile 3% — buyer opportunity
IV kink -2.0pts — no clear event
θ/ν ratio 167.26 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +13% @ 57% consistency — unclear
Score 49 (ITM 20% + inst 19%) — moderate institutional
For educational purposes only. Not investment advice.