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Home Depot (The) — Your statistical edge in selling HD options, quantified
Home Depot (The) (HD) operates in the Consumer Discretionary sector and has actively traded listed options. HD options appear underpriced — realized vol 29.4% exceeds IV 30d 29.4% (0.0pp). VRP sits at the 20th percentile. VRP of 0.0pp is below the Consumer Discretionary median of +9.7pp. See Premium Selling for the full setup.
VRP in Context
Volatility risk premium = implied vol minus realized volatility. Positive VRP = options are overpriced.
Options are priced above recent realized movement, which can give premium sellers a statistical edge. A positive VRP means you're selling options for more than they're statistically worth.
Look at the VRP trend and percentile to decide if the edge is strong enough to trade.
VRP = IV 30d − RV 20d (annualized, in percentage points)ORATS 30-day implied volatility, ORATS close-to-close 20-day realized volatility
ORATS IV data + ORATS close-to-close HV 20d
VRP is backward-looking for RV and forward-looking for IV. A positive VRP does not guarantee profitable premium selling — it measures the current pricing gap, not future outcomes.
90-day VRP history chart, percentile vs 252-day range, and VRP-optimized strategy matching — in active development.
This data is free for all users. No paywall — just not built yet.
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
Home Depot (The)'s VRP has turned negative at -0.0pp, meaning realized volatility exceeds what the options market is pricing in. The stock is moving 29.4% annualized while options price only 29.4% — the opposite of what premium sellers need. Selling options in this environment means being systematically underpaid for the risk taken. This is the market telling you that actual risk is higher than perceived risk. Consider waiting for VRP to recover above +2pp before initiating new short premium positions, or look at other tickers where conditions are more favorable.
Home Depot (The)'s VRP of -0.0pp measures the difference between what the options market expects (29.4% implied) and what is actually occurring (29.4% realized). Premium sellers profit when this gap is positive — they collect more in premium than the stock's movement costs them. VRP varies over time and across stocks, which is why monitoring it daily helps traders identify when conditions shift in or out of their favor.
Home Depot (The)'s VRP has been relatively stable over recent trading days, fluctuating around +-0.0pp without a clear directional trend. Stable VRP environments are workable for premium sellers — the edge is predictable and strategies can be sized consistently. The key risk in stable VRP periods is complacency: a sudden catalyst (earnings, macro event, sector rotation) can compress or expand VRP rapidly, so maintaining defined-risk structures and stop-loss discipline remains important even when conditions appear steady.
Home Depot (The)'s VRP is currently -0.0pp, derived from the difference between implied volatility (29.4%) and realized volatility (29.4%). A negative VRP means the stock is actually moving more than options price in, so selling premium is unfavorable right now.
No — Home Depot (The)'s negative VRP of -0.0pp indicates the stock is moving more than options prices reflect. Selling premium here means being underpaid for the risk. Wait for VRP to recover above +2pp or look at other tickers with stronger conditions.
Home Depot (The)'s VRP is at the 20th percentile — below its 252-day average. This means current conditions are weaker than usual for this particular stock. Reduced position sizes or waiting for VRP expansion would be prudent.
IV Rank tells you if Home Depot (The)'s options are expensive compared to their own history — currently 45%. VRP tells you if they're expensive compared to what the stock ACTUALLY does — currently -0.0pp. Together they provide a complete picture — IV Rank for historical context, VRP for current edge.