Bioactivates 3-methylindole (3MI) by dehydrogenation to the putative electrophile 3-methylene-indolenine. Stereoselectively catalyzes the formation of the 1R,2S-oxide from naphthalene. Lack activity with other common P450 substrates including 7-ethoxycoumarin. an organic molecule + O2 + reduced [NADPH--hemoprotein reductase] = an alcohol + H(+) + H2O + oxidized [NADPH--hemoprotein reductase] Lung specific. Belongs to the cytochrome P450 family.