IV is low with bearish flow. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 11.5% — cheap vs history
IV/HV 0.99x — IV ≤ HV
Sector percentile 17% — below sector median
Front/Back 1.27x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 23.9% — normal range
Effective IV 55.0% (ATM 23.9% + spread 15.6% + bias) — good value
Total drag 21.97% (spread 15.55% + slippage 6.42%) — high friction
Vega efficiency 35.53 (vega 55.246 / spread 15.55%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -26% (bearish) — Raw: -11%
|OI skew| 67.3% — put-heavy
Vol skew -51.1%, OI skew -67.3% — aligned
0-DTE 26%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +65%, ATM: +18%, OTM: -23% — strong bullish (ITM/ATM aligned)
Sector P/C percentile 94% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.3x avg — normal
Vol/OI 2.2% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +18.9% (5d) — building
Sector activity percentile 39% — below sector avg
Large trade volume 31% — institutional presence
Aggressive execution 43% — patient
Conviction -26 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 15.6% — wide
OI 728,994 — deep
Volume 15,893/day — active
$0.78 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 32% — tighter than sector
Depth 241.4 contracts (bid:102.1 ask:139.3) — adequate
Avg slippage 6.42% — poor
Is now a good time?
Considers earnings proximity,
Slope +26.8% — backwardation
IV percentile 12% — buyer opportunity
IV kink 5.0pts — no clear event
θ/ν ratio 1823.29 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -26% @ 63% consistency — moderate (bearish)
Score 61 (ITM 20% + inst 31%) — HIGH institutional
For educational purposes only. Not investment advice.