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 8.1% — cheap vs history
IV/HV 0.81x — IV ≤ HV
Sector percentile 13% — below sector median
Front/Back 0.89x — contango
Put/Call IV 1.16x — elevated
ATM IV 21.9% — normal range
Effective IV 104.2% (ATM 21.9% + spread 41.1% + bias) — expensive
Total drag 52.69% (spread 41.14% + slippage 11.55%) — high friction
Vega efficiency 0.39 (vega 1.623 / spread 41.14%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: +9% (neutral) — Raw: -0%
|OI skew| 20.0% — call-heavy
Vol skew +45.5%, OI skew +20.0% — aligned
0-DTE 24%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -44%, ATM: +4%, OTM: -2% — bearish (ITM/ATM divergent)
Sector P/C percentile 19% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.6x avg — normal
Vol/OI 3.2% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +4.4% (5d) — building
Sector activity percentile 50% — neutral vs sector
Large trade volume 0% — mostly retail
Aggressive execution 28% — patient
Conviction +9 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 41.1% — wide
OI 18,373 — adequate
Volume 591/day — adequate
$2.06 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 28% — tighter than sector
Depth 166.3 contracts (bid:76.4 ask:89.9) — adequate
Avg slippage 11.55% — poor
Is now a good time?
Considers earnings proximity,
Slope -10.6% — contango
IV percentile 8% — buyer opportunity
IV kink -1.7pts — no clear event
θ/ν ratio 8.40 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +9% @ 54% consistency — unclear
Score 30 (ITM 20% + inst 0%) — retail dominated
For educational purposes only. Not investment advice.