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Current CMS options analysis: Weak Signal for Selling premium on CMS. This CMS options page updates daily with IV rank, VRP, expected move, and strategy picks.
No strategies meet current entry criteria.
CMS Energy (CMS) is a Utilities stock with actively traded listed options. IV Rank 50% is 19pp above the Utilities sector median of 31%. CMS put/call walls.
CMS Edge Score: 62/100 — data coverage is strong, but current trading conditions are unfavorable.
VRP is marginal. The best trade today might be no trade.
CMS See full analysis →CMS conditions are unfavorable — but other tickers may have edge today
CMS’s setup is weak today. The Scanner surfaces S&P 500 tickers with positive VRP, high IV Rank, or active earnings crush — check those before forcing a trade on CMS.
Weak — Unfavorable for premium selling
EM = Price × RV₂₀d × √(t/252). Uses Yang-Zhang 20d realized volatility (not implied). ±1σ (68% confidence).
VRP is marginal. The best trade today might be no trade.
Conditions are weak — explore alternatives or wait for a better setup.
Strategy
Flow & Events
Planned
IV curve across expirations
Historical expected move hit rates
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
Edge Score = weighted composite of VRP, IV Rank, RV Regime, Earnings Proximity, Term Structure, and Liquidity. Ranges: Defensive (0–39), Selective (40–64), Favorable (65–100).IV Rank, VRP, RV Ratio, days to earnings, backwardation/contango, bid-ask spread quality
ORATS institutional options data, updated daily after market close (~6:00 PM ET)
The score reflects current market conditions and changes daily. A high score indicates favorable conditions for premium selling, not guaranteed profit. Always verify execution quality with your broker.
CMS Energy is trading in a normal volatility regime with an RV ratio of 0.95. The 20-day Yang-Zhang realized vol of 21.6% is roughly in line with the 60-day average of 17.6%, meaning the stock's recent price action matches historical expectations. For a utilities stock like CMS, this is a neutral signal — premium sellers can participate but should be selective with sizing and strike selection.
Looking at the past 20 trading days, CMS's RV ratio has been trending lower. The ratio ranged from 1.18 to 1.01, with the current reading of 0.95 near the lower end. 0 of 20 days showed seller-favorable conditions. A gradual decline is often more sustainable than a sharp drop, suggesting CMS may remain in this lower-vol regime for a while.
Based on current realized volatility, traders can expect CMS to move approximately ±$1.01 (1.4%) per day and ±$2.25 (3.0%) over five trading days. At a stock price of $73.90, these ranges are derived from the Yang-Zhang volatility model which accounts for overnight gaps and intraday range — more accurate than simple close-to-close calculations. Premium sellers typically place short strikes outside these 1-standard-deviation ranges to achieve approximately 68%+ probability of profit.
Current conditions on CMS point toward range-bound strategies like iron condor (conservative). Normal volatility regime (ratio 0.95). Range-bound strategies with conservative sizing. Iron Condor (Conservative) benefits from time decay while defining maximum risk on both sides — a structure that suits CMS's current volatility profile where directional edge is limited but overall conditions are acceptable for premium collection.
Utilities are traditionally low-vol defensive plays, but interest rate sensitivity can create unexpected moves. CMS is specifically an Utilities sector component tracked by VolRadar. Understanding sector-level volatility dynamics helps premium sellers diversify their positions across different correlation regimes.
VolRadar tracks CMS daily as part of the S&P 500 universe, providing Yang-Zhang (OHLC-based) realized volatility across 10, 20, and 60-day windows, RV ratio analysis, expected move calculations, and premium selling condition assessments. Note: RV values on this page use the Yang-Zhang estimator (captures overnight gaps); VRP and RV Ratio use ORATS close-to-close RV to match the IV data source. Data is updated daily after market close (~6:00 PM ET). See the disclaimer for the full risk and regulatory notice.
More about CMS
CMS Energy currently shows a weak premium selling signal. Consider waiting for conditions to improve. The VRP Analysis page tracks historical premium edge trends that may signal when conditions are turning.
VolRadar tracks CMS Energy across 10 analysis dimensions updated daily after market close. The premium selling signal combines VRP edge, volatility regime, IV Rank, earnings proximity, and market-wide conditions into a single actionable verdict. Each sub-page goes deeper: VRP Analysis for the implied-vs-realized spread, IV Analysis for peer comparisons, Expected Move for strike placement, Earnings Crush for event history, and the Strategy Builder for modeling specific trades.
CMS Energy currently shows a weak premium selling signal because multiple factors are unfavorable. Consider waiting for conditions to improve.
CMS Energy's volatility is measured using two key metrics. The RV Ratio compares realized volatility (ORATS HV 20d) to implied volatility (IV 30d). When the RV Ratio drops below 0.85, realized movement is well below what options are pricing — the sweet spot for premium sellers. VRP (Volatility Risk Premium) measures the gap between IV and HV in percentage points — positive VRP means options are overpriced relative to actual movement. Current RV Ratio: 0.95.
CMS Energy's snapshot: IV Rank 50% (elevated premiums), VRP +0.8pp (slight edge), RV Ratio 0.95 (normal volatility). These three metrics work together — IV Rank shows historical context, VRP shows current overpricing, and RV Ratio shows the volatility trend. See the IV Analysis page for peer comparisons and deeper breakdown.
VolRadar provides 10 analysis pages for CMS Energy: Overview (this page), Premium Selling (signal and strategy verdict), VRP Analysis (volatility risk premium history), Expected Move (range and probabilities), IV Analysis (implied volatility breakdown and peer comparison), Earnings Crush (historical post-earnings IV patterns), Options Strategy Builder (18 presets + custom calculator), Covered Call Analysis (ranked by CC Score), Wheel Strategy (CSP calculator and viability), and Support & Resistance Walls (options-derived price levels).
Every options trade carries risk: undefined-risk strategies (naked puts/calls) expose you to large losses on gap moves, while defined-risk strategies cap losses but reduce premium. For CMS Energy, current conditions require careful selection — check the signal strength before entering positions — always size positions so no single trade risks more than 1-3% of your account. Use the Strategy Builder to model worst-case scenarios before entering.
Based on Yang-Zhang realized volatility, CMS Energy has a 1-day expected move of ±$1.01 (±1.4%) and a 5-day expected move of ±$2.25 (±3.0%). This means the stock is expected to trade between $72 and $76 over the next week with approximately 68% probability.
Higher RV Ratio (closer to 1.0) means IV barely exceeds RV, resulting in slimmer VRP edge. Lower RV Ratio = wider gap between IV and actual movement = stronger seller edge.
View all Utilities tickers →More analysis sections planned — Dark Pool Flow, Unusual Activity, Sector Comparison, and more.
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Spread +1.0pp — IV is pricing above realized movement. This is the spread theta sellers collect as IV mean-reverts toward RV.