Loading...
Loading...
A multiplier showing how much a stock's implied move exceeds its typical daily range around earnings. An earnings effect of 4x means the expected earnings move is 4 times the normal daily range.
⚡ KEY TAKEAWAY: Earnings effect 4x+ means the market expects a move 4 times the normal daily range. That's where IV crush profits come from — if you're positioned correctly.
Implied Volatility (IV)
Higher IV = more premium to collect when selling options. But also more risk if the stock moves.
Realized Volatility (RV)
When RV is lower than IV, options are overpriced relative to actual movement — the core edge for sellers.
IV Rank
IV Rank > 50 = premiums elevated, good for selling. Below 30 = cheap, consider waiting.
IV Percentile
IV Percentile 80 = IV was lower than today 80% of the time. High percentile confirms elevated premiums.