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Best Buy — Implied volatility rank, VRP edge, and volatility regime
Best Buy (BBY) operates in the Consumer Discretionary sector and has actively traded listed options. Its IV Rank reads 25.4%, mid-range within the past year — neither cheap nor rich. IV Rank 25% is 11pp below the Consumer Discretionary sector median of 36%. Average IV can work with directional or defined-risk structures. 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
Best Buy's IV Rank of 25.4% 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 +1.1pp), 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.
Best Buy's IV Rank measures where current implied volatility sits relative to its 252-day range. At 25.4%, 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.
Best Buy's IV Rank of 25.4% is lower than most Consumer Discretionary peers. This suggests either the stock is genuinely calmer than peers, or the market has already compressed IV after a recent catalyst resolution. For premium sellers focused on sector plays, peers with higher IV Rank may offer better absolute returns. Higher-IV alternatives: CMG (55%), CVNA (37%), DHI (36%).
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.
Best Buy's IV Rank is 25.4%, meaning current implied volatility is higher than 25% of readings over the past 252 trading days. This low level means premiums are relatively cheap, which is less favorable for selling options.
Best Buy's Volatility Risk Premium (VRP) is +1.1pp. Slightly — IV is marginally above realized volatility, providing a small edge for sellers.
Best Buy's IV Rank is 25.4% — meaning current IV is higher than 25% 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 Consumer Discretionary peers, Best Buy has an IV Rank of 25.4%. CMG leads the sector at 55% IV Rank versus Best Buy's 25%. Both may offer premium selling opportunities depending on other conditions.
Best Buy'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 (0.97) 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.
Free embeddable tool: IV Rank Gauge — add daily IV Rank to any site. No signup, no API key.
IV 30d (41.0%) − HV 20d (40.0%) = +1.1pp
Why two RV values? ORATS HV uses 20-day close-to-close. Yang-Zhang uses OHLC. VRP computed with ORATS HV. Δ2.7pp.
HV 20d (40.0%) ÷ IV 30d (41.0%). Below 1.0 = options overpriced.
| Window | Value | vs 60d ⓘ |
|---|---|---|
| RV 10d (YZ) | 46.2% | +28.6% |
| RV 20d (YZ) | 42.7% | +18.8% |
| HV 20d (ORATS) VRP | 40.0% | +11.3% |
| RV 60d (YZ) | 35.9% | baseline |