OFSS - No Buy

IF call short covering dominates the chain above spot AND put writing dominates below spot — but IV is sitting at 1.5x its normal range — THEN as a buyer, the OI structure is telling you the direction, but the IV is telling you the market has already priced in the move. Today's OFSS chain is a masterclass in this trap. Every OI signal screamed bullish: walls cracking at 8,100–8,500, floors being built at 8,500 PE, bears unwinding at 7,000–7,500 PE. Yet IV at 38% on a stock that normally trades 22% means you are buying the most expensive option of the quarter — right before a results event that will collapse IV regardless of outcome. The rule to tattoo in your playbook: OI tells you direction; IV tells you price. You need both to align. When direction is right but price is wrong, you sit out — and wait for IV to revert before buying. Post-results, if OFSS holds above 8,500 and IV drops back to 22–25%, that's the real entry for next week's trade.