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 6.2% — cheap vs history
IV/HV 1.32x — IV premium over HV
Sector percentile 10% — below sector median
Front/Back 1.48x — backwardation
Put/Call IV 1.16x — elevated
ATM IV 20.4% — normal range
Effective IV 43.3% (ATM 20.4% + spread 11.4% + bias) — excellent value
Total drag 17.88% (spread 11.45% + slippage 6.43%) — high friction
Vega efficiency 62.60 (vega 71.671 / spread 11.45%) — efficient
Bullish or bearish?
Analyzes
Conviction-weighted: -12% (bearish) — Raw: +3%
|OI skew| 44.2% — put-heavy
Vol skew -41.8%, OI skew -44.2% — aligned
0-DTE 32%, far-OTM 15%, avg DTE 30
OI change +0.0% (5d) — stable
ITM: -58%, ATM: +2%, OTM: +7% — strong bearish (ITM/ATM divergent)
Sector P/C percentile 93% — very bearish vs sector
Unusual activity?
Detects volume surges,
Volume 0.8x avg — normal
Vol/OI 1.8% — normal turnover
Top 3 strikes = 50% — dispersed
1 day(s) elevated — may be one-day event
OI change +1.9% (5d) — stable
Sector activity percentile 34% — below sector avg
Large trade volume 32% — institutional presence
Aggressive execution 47% — patient
Conviction -12 (bearish) — mixed
Can I trade efficiently?
Evaluates
Spread 11.4% — wide
OI 426,783 — deep
Volume 7,525/day — active
$0.57 to cross — expensive
1 liquid strikes — limited options
Sector spread percentile 25% — tighter than sector
Depth 378.6 contracts (bid:192.6 ask:186.0) — adequate
Avg slippage 6.43% — poor
Is now a good time?
Considers earnings proximity,
Slope +48.0% — backwardation
IV percentile 6% — buyer opportunity
IV kink 8.2pts — no clear event
θ/ν ratio 4536.16 — favors income trades
5 liquid expirations — flexible
safe window: No earnings detected
Spread ratio 1.00x — stable
Flow -12% @ 56% consistency — unclear
Score 62 (ITM 20% + inst 32%) — HIGH institutional
For educational purposes only. Not investment advice.