IV is low. Conditions favor option buyers.
Is IV priced right?
Measures whether options are cheap, fair, or rich relative to historical and peer
IV Rank 15.4% — cheap vs history
IV/HV 0.91x — IV ≤ HV
Sector percentile 23% — below sector median
Front/Back 0.85x — contango
Put/Call IV 1.16x — elevated
ATM IV 25.8% — normal range
Effective IV 42.1% (ATM 25.8% + spread 8.2% + bias) — excellent value
Total drag 12.83% (spread 8.16% + slippage 4.67%) — high friction
Vega efficiency 91.23 (vega 74.447 / spread 8.16%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: +26% (bullish) — Raw: +29%
|OI skew| 31.7% — put-heavy
Vol skew +23.7%, OI skew -31.7% — divergent (opposite)
0-DTE 11%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: +13%, ATM: +16%, OTM: +37% — bullish (ITM/ATM aligned)
Sector P/C percentile 26% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 0.9x avg — normal
Vol/OI 2.7% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +8.1% (5d) — building
Sector activity percentile 44% — neutral vs sector
Large trade volume 38% — institutional presence
Aggressive execution 26% — patient
Conviction +26 (bullish) — mixed
Can I trade efficiently?
Evaluates
Spread 8.2% — wide
OI 824,387 — deep
Volume 22,126/day — active
$0.41 to cross — cheap
1 liquid strikes — limited options
Sector spread percentile 37% — tighter than sector
Depth 625.1 contracts (bid:345.3 ask:279.8) — deep
Avg slippage 4.67% — poor
Is now a good time?
Considers earnings proximity,
Slope -14.9% — contango
IV percentile 15% — buyer opportunity
IV kink -2.8pts — no clear event
θ/ν ratio 3208.91 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow +26% @ 63% consistency — moderate (bullish)
Score 68 (ITM 20% + inst 38%) — HIGH institutional
For educational purposes only. Not investment advice.