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 9.7% — cheap vs history
IV/HV 0.85x — IV ≤ HV
Sector percentile 15% — below sector median
Front/Back 0.98x — contango
Put/Call IV 1.16x — elevated
ATM IV 22.9% — normal range
Effective IV 85.2% (ATM 22.9% + spread 31.1% + bias) — expensive
Total drag 38.45% (spread 31.15% + slippage 7.30%) — high friction
Vega efficiency 5.93 (vega 18.469 / spread 31.15%) — acceptable
Bullish or bearish?
Analyzes
Conviction-weighted: +76% (strong bullish) — Raw: +53%
|OI skew| 3.8% — balanced
Vol skew +87.7%, OI skew +3.8% — aligned
0-DTE 48%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -92%, ATM: -17%, OTM: +73% — strong bearish (ITM/ATM aligned)
Sector P/C percentile 5% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.9x avg — normal
Vol/OI 3.7% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +2.9% (5d) — building
Sector activity percentile 54% — neutral vs sector
Large trade volume 77% — heavy institutional
Aggressive execution 30% — patient
Conviction +76 (bullish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 31.1% — wide
OI 37,027 — adequate
Volume 1,383/day — adequate
$1.56 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 29% — tighter than sector
Depth 211.5 contracts (bid:113.1 ask:98.4) — adequate
Avg slippage 7.30% — poor
Is now a good time?
Considers earnings proximity,
Slope -2.2% — flat/unclear
IV percentile 10% — buyer opportunity
IV kink -0.2pts — no clear event
θ/ν ratio 1678.99 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +76% @ 88% consistency — STRONG directional (bullish)
Score 107 (ITM 20% + inst 77%) — HIGH institutional
For educational purposes only. Not investment advice.