IV is low with bullish flow and 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 3.1% — cheap vs history
IV/HV 0.77x — IV ≤ HV
Sector percentile 5% — below sector median
Front/Back 0.92x — contango
Put/Call IV 1.16x — elevated
ATM IV 16.9% — normal range
Effective IV 49.5% (ATM 16.9% + spread 16.3% + bias) — excellent value
Total drag 19.98% (spread 16.29% + slippage 3.69%) — high friction
Vega efficiency 0.97 (vega 1.577 / spread 16.29%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +30% (bullish) — Raw: +24%
|OI skew| 12.0% — balanced
Vol skew +42.0%, OI skew +12.0% — aligned
0-DTE 12%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +77%, ATM: -26%, OTM: +31% — strong bullish (ITM/ATM divergent)
Sector P/C percentile 21% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 1.4x avg — normal
Vol/OI 10.9% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +15.8% (5d) — building
Sector activity percentile 83% — very active vs sector
Large trade volume 0% — mostly retail
Aggressive execution 9% — patient
Conviction +30 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 16.3% — wide
OI 10,831 — adequate
Volume 1,183/day — adequate
$0.81 to cross — expensive
1 liquid strikes — limited options
Sector spread percentile 21% — tighter than sector
Depth 58.0 contracts (bid:34.5 ask:23.5) — thin
Avg slippage 3.69% — poor
Is now a good time?
Considers earnings proximity,
Slope -7.9% — contango
IV percentile 3% — buyer opportunity
IV kink -0.8pts — no clear event
θ/ν ratio 9.19 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +30% @ 65% consistency — moderate (bullish)
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.