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Reading IV Against Realised Volatility
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Most option screeners tell you an option's implied volatility. Very few tell you whether that number is high relative to what the stock actually does — and that gap is the whole trade.
Why absolute IV is not a signal
A 90% IV name that realises 120% volatility is selling insurance below cost. The premium looks enormous and the position still has negative expected value.
IV only means something next to an estimate of future realised volatility.
What to compare instead
| Metric | Question it answers |
|---|---|
| IV | What is the market pricing? |
| HV | What has the stock actually done? |
| IV/HV | Is the option expensive relative to that? |
The screener on this site computes HV from daily candles and trims the single largest session, because one gap otherwise owns the entire 30-day window.
A ratio above 1.0x means options are pricing more movement than the stock has delivered.
Try it on the screener once you are signed in.
Thu cong cu — hoac dung OptionStrat truc tiep.