AInvestOption Pilot Program
Options/XLU
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XLUState Street Utilities Select Sector SPDR ETF

Options Analysis Report
AUM $22.3B|ARCX
● 2026-08-31$42.73
NEUTRAL
Analysis: 2026-08-28 EOD data
1Y +1.7%YTD -1.0%7D -1.1%
47,862
30D
±5.0%
16%

XLU Options Overview

IV is low with unusual activity. No clear edge detected.

REWARDS

RISK ANALYSIS

5.9VALUESENTIMENTACTIVITYLIQUIDITYTIMING

Snowflake Analysis

Favorable conditions for option buyers

Learn
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XLU Gamma Walls

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Value

Is IV priced right?

6.7
ExpensiveCheap

Measures whether options are cheap, fair, or rich relative to historical and peer

levels.

Risk Checks6/9 checks passed
≤35%

IV Rank 23.2% — cheap vs history

<1.05x

IV/HV 1.53x — IV premium over HV

Sector Relative≤50%

Sector percentile 40% — below sector median

<1.1x

Front/Back 1.17x — backwardation

<1.25x

Put/Call IV 1.16x — elevated

<80%

ATM IV 20.6% — normal range

<80%

Effective IV 32.3% (ATM 20.6% + spread 5.8% + bias) — excellent value

<3.0%

Total drag 10.71% (spread 5.85% + slippage 4.86%) — high friction

≥5.0

Vega efficiency 8.37 (vega 4.897 / spread 5.85%) — efficient

Sentiment

Bullish or bearish?

5.0
BearishBullish

Analyzes

,
, and flow direction to determine market bias.

Risk ChecksBullish - Strong signal (Conviction: +29%, Raw: +26%)
|net sentiment| ≥25%

Conviction-weighted: +29% (bullish) — Raw: +26%

≥15%

|OI skew| 38.2% — put-heavy

Same sign, |vol skew| ≥10%

Vol skew -10.8%, OI skew -38.2% — aligned

≥2/3 conditions

0-DTE 0%, far-OTM 15%, avg DTE 30

|change| ≥3%

OI change +0.0% (5d) — stable

|weighted flow| ≥20%

ITM: +5%, ATM: -26%, OTM: +58% — neutral (ITM/ATM divergent)

Sector Relative≤40% or ≥60%

Sector P/C percentile 89% — very bearish vs sector

Activity

Unusual activity?

4.3
QuietActive

Detects volume surges,

, and unusual options activity that may signal moves.

Risk Checks1/8 checks passed
≥1.5x

Volume 1.1x avg — normal

≥15%

Vol/OI 2.6% — normal turnover

≥2 days

1 day(s) elevated — may be one-day event

≥5%

OI change +1.8% (5d) — stable

Sector Relative≥60%

Sector activity percentile 54% — neutral vs sector

≥30%

Large trade volume 61% — heavy institutional

≥60%

Aggressive execution 36% — patient

≥30

Conviction +29 (bullish) — mixed

Liquidity

Can I trade efficiently?

5.7
IlliquidLiquid

Evaluates

, volume depth, and open interest for trade execution quality.

Risk Checks4/8 checks passed
≤5.0%

Spread 5.8% — wide

≥10,000

OI 1,851,821 — deep

≥500

Volume 47,862/day — active

≤$0.50

$0.29 to cross — cheap

≥5 strikes

0 liquid strikes — limited options

Sector Relative≤40%

Sector spread percentile 54% — neutral vs sector

≥100 contracts

Depth 804.0 contracts (bid:383.4 ask:420.6) — deep

<1.0%

Avg slippage 4.86% — poor

Timing

Is now a good time?

7.5
RiskyFavorable

Considers earnings proximity,

, and event calendar for optimal entry timing.

Risk Checks8/9 checks passed
|slope| ≥5%

Slope +16.6% — backwardation

<30 or >70

IV percentile 23% — buyer opportunity

≥10pts kink

IV kink 2.9pts — no clear event

<0.5 or >2.0

θ/ν ratio 379.58 — favors income trades

≥3 expirations

4 liquid expirations — flexible

≥60% (safe)

safe window: No earnings detected

<1.2 ratio

Spread ratio 1.00x — stable

≥25% strength + ≥50% consistency

Flow +29% @ 64% consistency — moderate (bullish)

≥40 composite score

Score 91 (ITM 20% + inst 61%) — HIGH institutional

Directional Strategy Fit

Option Buyers
Long Calls6.1
bullishIV cheap, mixed flow
Long Puts6.1
bearishIV cheap, mixed flow
Premium Sellers
Cash-Secured Put5.0
bullishIV too cheap, mixed flow
Covered Call5.0
bearishIV too cheap, mixed flow

For educational purposes only. Not investment advice.

The Options Desk tracks the move options price into every US earnings report the week of Aug 31, next to how much each stock has actually moved on its past prints — plus the SPY, QQQ and IWM expected ranges and the gamma walls that box them in.

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