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How we calculate every metric on VolRadar — formulas, data sources, and interpretation rules.
Every metric on VolRadar has a documented calculation. We show you exactly how each number is computed — so you know what drives the signals and can trust them in your trading.
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Refreshed daily after market close
Where current implied volatility stands relative to its 52-week range. The primary gauge for whether options are cheap or expensive.
(Current IV − 52w Low) / (52w High − 52w Low) × 100Key takeaway:IV Rank > 50 = premiums elevated, good for selling. Below 25 = cheap, consider waiting.
If AAPL's 52-week IV range is 18%–42% and current IV is 30%, IV Rank = (30−18)/(42−18) = 50. Options are priced at the midpoint of their annual range.
Above 50 → premiums are elevated, good for selling. Below 25 → premiums are cheap, consider waiting.
The spread between what options imply volatility will be and what it actually was. Positive VRP = options are overpriced relative to recent movement.
IV 30d − HV 20dKey takeaway:VRP ≥ +2pp clears the Strong-signal VRP gate. VRP +1 to +2pp = Medium-eligible. VRP < 0 = avoid selling.
If TSLA's IV is 45% but it only realized 38% movement over the past 20 days, VRP = +7pp. Options are overpriced by 7 percentage points.
VRP ≥ +2pp clears the Strong VRP gate (combined with IVR ≥ 30, score ≥ 60, earnings > 14d). VRP +1 to +2pp → Medium. VRP < 0 → options are underpriced, avoid selling.
Realized-volatility-based price range for a given timeframe. Used for strike selection and risk sizing.
Price × RV × √(DTE / 252)Key takeaway:Place short strikes outside the expected move to increase win probability.
SPY at $500 with 16% realized vol: 1-day EM = $500 × 0.16 × √(1/252) = ±$5.04. The stock is expected to stay within $495–$505 about 68% of the time.
Place short strikes outside the expected move to increase win probability. Wider EM = more premium but more risk.
Daily 0–100 composite of 5 volatility signals that tells premium sellers whether market conditions favor entering new positions.
(Premium Edge × 0.30) + (VIX Regime × 0.25) + (Volatility Trend × 0.20) + (Earnings Safety × 0.15) + (Term Structure × 0.10)Key takeaway:65 or above = green light, sell premium. 40–64 = be selective. Below 40 = sit out.
Score 72: Premium Edge is strong (68% of S&P 500 with positive VRP), VIX at 18 (VIX Regime favorable), vol is cooling, few earnings this week, and Term Structure is in contango. Result: "Favorable — sell broadly."
65 or above → green light, sell premium. 40–64 → be selective, trade only the best setups. Below 40 → sit out or reduce size.
7-factor composite score ranking covered call opportunities across 500+ stocks by income potential, safety, liquidity, underlying quality, event proximity, IV edge, and execution quality.
(Income × 0.25) + (Safety × 0.20) + (Liquidity × 0.15) + (Quality × 0.15) + (Events × 0.10) + (IV × 0.10) + (Execution × 0.05)Key takeaway:CC Score > 75 = strong setup. 60–75 = acceptable. Below 60 = skip.
CC Score 82: 2.1% monthly income potential, ~8% safety buffer to first support, tight bid/ask (0.02), dividend aristocrat, no earnings within 21 days, IV Rank 52, OI > 5000. Result: "Strong — lead candidate."
CC Score > 75 → strong setup, lead the watchlist. 60–75 → acceptable secondary choice. Below 60 → skip or wait for better setup.
Check today’s Weather Score and ranked setups on the homepage.
See VRP, IV Rank, and signal strength for any S&P 500 stock.
Today’s pre-market analysis with regime interpretation and top picks.
Last updated: May 8, 2026