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A VolRadar Weather Score component (30% weight) measuring how much implied volatility exceeds realized volatility across the S&P 500. It answers the core question: are options expensive enough to sell? Premium Edge is calculated as the percentage of S&P 500 stocks where IV exceeds 20-day realized volatility. A reading above 60% signals broad market mispricing in your favor.
⚡ KEY TAKEAWAY: The biggest Weather Score driver at 30% weight. When Premium Edge is high, the market is overpaying for options — prime time to sell.
Weather Score
65–100 = Favorable (green light). 40–64 = Selective (pick spots). 0–39 = Defensive (sit out or cut size). Check the Weather Score every morning before you trade — it takes 5 seconds and can save you from selling into a hostile environment.
VIX Regime
VIX below 15 = premiums too cheap to bother. VIX above 30 = gap risk too high. The 15–25 zone is where sellers thrive. Always check VIX regime before sizing your positions.
Volatility Trend
Falling RV means stocks are calming down while options still price in yesterday's turbulence. That lag is your edge.
Earnings Safety
Peak earnings season = minefield for premium sellers. When Earnings Safety is low, stick to stocks well past their report date.