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 5.1% — cheap vs history
IV/HV 1.11x — IV premium over HV
Sector percentile 8% — below sector median
Front/Back 0.91x — contango
Put/Call IV 1.16x — elevated
ATM IV 19.4% — normal range
Effective IV 27.1% (ATM 19.4% + spread 3.9% + bias) — excellent value
Total drag 6.69% (spread 3.86% + slippage 2.83%) — high friction
Vega efficiency 6.23 (vega 2.404 / spread 3.86%) — acceptable
Bullish or bearish?
Analyzes
Conviction-weighted: -56% (strong bearish) — Raw: -41%
|OI skew| 17.5% — put-heavy
Vol skew +73.7%, OI skew -17.5% — divergent (opposite)
0-DTE 9%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -5%, ATM: -48%, OTM: -38% — bearish (ITM/ATM aligned)
Sector P/C percentile 10% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 1.1x avg — normal
Vol/OI 4.0% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +7.5% (5d) — building
Sector activity percentile 56% — neutral vs sector
Large trade volume 81% — heavy institutional
Aggressive execution 73% — urgent
Conviction -56 (bearish) — strong conviction
Can I trade efficiently?
Evaluates
Spread 3.9% — acceptable
OI 6,217,347 — deep
Volume 246,867/day — active
$0.19 to cross — cheap
0 liquid strikes — limited options
Sector spread percentile 24% — tighter than sector
Depth 742.7 contracts (bid:428.7 ask:314.0) — deep
Avg slippage 2.83% — poor
Is now a good time?
Considers earnings proximity,
Slope -9.0% — contango
IV percentile 5% — buyer opportunity
IV kink -0.5pts — no clear event
θ/ν ratio 69.29 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -56% @ 78% consistency — STRONG directional (bearish)
Score 111 (ITM 20% + inst 81%) — HIGH institutional
For educational purposes only. Not investment advice.