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Air Products — Implied volatility rank, VRP edge, and volatility regime
Air Products (APD) is a Materials stock with actively traded listed options. Its IV Rank reads 20.6%, near the bottom of the 52-week range — premiums are cheap. IV Rank 21% is 9pp below the Materials sector median of 30%. Cheap premiums tilt toward long-volatility or debit strategies. See Expected Move for strike placement.
This helps you judge whether implied volatility is elevated enough to justify selling options. High IV Rank means premiums are rich compared to the past year.
IV Rank above 50 generally favors premium sellers — you're collecting above-average premium.
IV Rank = (Current IV − 52w Low IV) / (52w High IV − 52w Low IV) × 100ORATS 30-day implied volatility, 52-week IV high/low
ORATS institutional options data, updated daily after market close (~6:00 PM ET)
IV Rank uses a fixed 1-year lookback. Regime changes (e.g., post-COVID vol reset) can distort the range. IV Rank alone does not indicate direction.
Higher IV Rank means relatively richer premiums compared to each stock's own history.
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
Air Products's IV Rank of 20.6% means premiums are in the lower portion of the 252-day range. Absolute premium available per contract is reduced, which compresses potential returns for sellers. However, low IV Rank doesn't necessarily mean selling is wrong — if VRP is still positive (currently +2.5pp), options may still be overpriced relative to actual movement. The win rate can be high in low-IV environments because the stock is genuinely calm.
Air Products's IV Rank measures where current implied volatility sits relative to its 252-day range. At 20.6%, it indicates how rich or cheap options premiums are compared to the past year. Premium sellers generally prefer IV Rank above 30–50%, as higher IV means more premium per contract and a greater statistical edge — assuming VRP confirms actual overpricing.
Air Products's earnings in approximately 7 days is likely contributing to the current IV level. Pre-earnings IV ramp is a well-documented pattern — implied volatility rises as the binary event approaches, then collapses (crushes) after the announcement. The portion of IV attributable to earnings makes the IV Rank less comparable to non-earnings periods. Premium sellers should separate the "structural" IV Rank from the "event" premium to make informed decisions about whether to trade through or around the earnings date.
VolRadar's signal prioritizes relative mispricing (RV Ratio) over absolute premium level (IV Rank). A ticker with low IVR but very low RV Ratio may show a Strong signal because options are significantly overpriced relative to actual movement. For richest absolute premiums, check IV Rank (>50%). Not financial advice — quantitative screening tool.
Air Products's IV Rank is 20.6%, meaning current implied volatility is higher than 21% of readings over the past 252 trading days. This low level means premiums are relatively cheap, which is less favorable for selling options.
Air Products's Volatility Risk Premium (VRP) is +2.5pp. Slightly — IV is marginally above realized volatility, providing a small edge for sellers.
Air Products's IV Rank is 20.6% — meaning current IV is higher than 21% of readings over the past year. This is low, meaning premiums are relatively cheap. Most theta gang traders prefer selling when IV Rank is above 30–50%.
Among Materials peers, Air Products has an IV Rank of 20.6%. IP leads the sector at 63% IV Rank versus Air Products's 21%. Both may offer premium selling opportunities depending on other conditions.
Air Products's volatility is calculated using the Yang-Zhang estimator, which incorporates overnight gaps, opening range, and intraday movement — more accurate than simple close-to-close calculations for stocks with significant pre/post-market activity. The RV Ratio (0.91) compares realized volatility (HV 20d) to implied volatility (IV 30d). Below 0.85 means actual movement is well below what options are pricing in — favorable for premium sellers.
With earnings approximately 7 days away, Air Products's IV Rank includes a significant earnings premium component. IV typically ramps 7–14 days before earnings as hedgers and speculators bid up option prices. This inflates the IV Rank above where it would be without the upcoming event. After earnings, IV typically crushes — often by 20–40% — as uncertainty resolves. The current IV Rank should be interpreted as "event-elevated" rather than a pure measure of the stock's structural volatility level.
Free embeddable tool: IV Rank Gauge — add daily IV Rank to any site. No signup, no API key.
IV 30d (28.0%) − HV 20d (25.5%) = +2.5pp
Why two RV values? ORATS HV uses 20-day close-to-close. Yang-Zhang uses OHLC. VRP computed with ORATS HV. Δ5.0pp.
HV 20d (25.5%) ÷ IV 30d (28.0%). Below 1.0 = options overpriced.
| Window | Value | vs 60d ⓘ |
|---|---|---|
| RV 10d (YZ) | 28.3% | -1.2% |
| RV 20d (YZ) | 30.5% | +6.5% |
| HV 20d (ORATS) VRP | 25.5% | -11.1% |
| RV 60d (YZ) | 28.7% | baseline |