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 3.1% — cheap vs history
IV/HV 0.99x — IV ≤ HV
Sector percentile 5% — below sector median
Front/Back 1.05x — flat
Put/Call IV 1.16x — elevated
ATM IV 16.7% — normal range
Effective IV 68.8% (ATM 16.7% + spread 26.1% + bias) — fair
Total drag 33.50% (spread 26.07% + slippage 7.43%) — high friction
Vega efficiency 2.78 (vega 7.246 / spread 26.07%) — spread drag
Bullish or bearish?
Analyzes
Conviction-weighted: -11% (bearish) — Raw: +0%
|OI skew| 0.2% — balanced
Vol skew +87.1%, OI skew -0.2% — divergent (opposite)
0-DTE 25%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -41%, ATM: -12%, OTM: +13% — strong bearish (ITM/ATM aligned)
Sector P/C percentile 5% — very bullish vs sector
Unusual activity?
Detects volume surges,
Volume 1.6x avg — elevated
Vol/OI 4.6% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +4.1% (5d) — building
Sector activity percentile 60% — active vs sector
Large trade volume 70% — heavy institutional
Aggressive execution 36% — patient
Conviction -11 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 26.1% — wide
OI 32,539 — adequate
Volume 1,500/day — adequate
$1.30 to cross — expensive
0 liquid strikes — limited options
Sector spread percentile 21% — tighter than sector
Depth 201.4 contracts (bid:90.0 ask:111.4) — adequate
Avg slippage 7.43% — poor
Is now a good time?
Considers earnings proximity,
Slope +4.7% — flat/unclear
IV percentile 3% — buyer opportunity
IV kink 1.2pts — no clear event
θ/ν ratio 710.36 — favors income trades
3 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -11% @ 56% consistency — unclear
Score 100 (ITM 20% + inst 70%) — HIGH institutional
For educational purposes only. Not investment advice.