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 20.1% — cheap vs history
IV/HV 1.07x — IV premium over HV
Sector percentile 30% — below sector median
Front/Back 1.22x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 27.9% — normal range
Effective IV 40.1% (ATM 27.9% + spread 6.1% + bias) — excellent value
Total drag 9.23% (spread 6.12% + slippage 3.11%) — high friction
Vega efficiency 35.37 (vega 21.645 / spread 6.12%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -9% (neutral) — Raw: +2%
|OI skew| 25.0% — put-heavy
Vol skew +38.9%, OI skew -25.0% — divergent (opposite)
0-DTE 38%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -5%, ATM: +34%, OTM: -26% — bullish (ITM/ATM divergent)
Sector P/C percentile 22% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.5x avg — normal
Vol/OI 2.6% — 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 43% — neutral vs sector
Large trade volume 56% — heavy institutional
Aggressive execution 65% — urgent
Conviction -9 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 6.1% — wide
OI 5,311,953 — deep
Volume 136,849/day — active
$0.31 to cross — cheap
0 liquid strikes — limited options
Sector spread percentile 42% — neutral vs sector
Depth 468.6 contracts (bid:225.0 ask:243.6) — adequate
Avg slippage 3.11% — poor
Is now a good time?
Considers earnings proximity,
Slope +21.6% — backwardation
IV percentile 20% — buyer opportunity
IV kink 3.9pts — no clear event
θ/ν ratio 2302.68 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -9% @ 54% consistency — unclear
Score 86 (ITM 20% + inst 56%) — HIGH institutional
For educational purposes only. Not investment advice.