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Lululemon Athletica — Implied volatility rank, VRP edge, and volatility regime
Lululemon Athletica (LULU) operates in the Consumer Discretionary sector and has actively traded listed options. Its IV Rank reads 33.5%, mid-range within the past year — neither cheap nor rich. IV Rank 34% is 5pp above the Consumer Discretionary sector median of 29%. 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
Lululemon Athletica's IV Rank of 33.5% 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 0.0pp), 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.
Lululemon Athletica's IV Rank measures where current implied volatility sits relative to its 252-day range. At 33.5%, 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.
Lululemon Athletica's realized volatility currently exceeds implied volatility (VRP 0.0pp), meaning the stock is actually moving more than options prices suggest. This negative VRP environment is unfavorable for premium sellers — you're collecting less premium than the risk warrants. This can occur during fundamental shifts, sector rotation, or macro events where the stock's behavior has changed faster than the options market has adjusted. Wait for IV to catch up to RV, or for RV to calm down, before initiating new short premium positions.
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.
Free embeddable tool: IV Rank Gauge — add daily IV Rank to any site. No signup, no API key.
IV 30d (45.7%) − HV 20d (45.6%) = 0.0pp
Why two RV values? ORATS HV uses 20-day close-to-close. Yang-Zhang uses OHLC. VRP computed with ORATS HV. Δ5.1pp.
HV 20d (45.6%) ÷ IV 30d (45.7%). Below 1.0 = options overpriced.
| Window | Value | vs 60d ⓘ |
|---|---|---|
| RV 10d (YZ) | 41.5% | -7.1% |
| RV 20d (YZ) | 40.5% | -9.5% |
| HV 20d (ORATS) VRP | 45.6% | +2.0% |
| RV 60d (YZ) | 44.7% | baseline |
| 28.1% |
| 0.79 |
| +10.4pp |
| weak |
| CVNA | 39.7% | 0.80 | +17.7pp | strong |
| GRMN | 29.4% | 0.81 | +7.3pp | weak |
Lululemon Athletica's IV Rank is 33.5%, meaning current implied volatility is higher than 34% of readings over the past 252 trading days. This low level means premiums are relatively cheap, which is less favorable for selling options.
Lululemon Athletica's Volatility Risk Premium (VRP) is 0.0pp. No — realized volatility currently exceeds implied volatility, meaning options are underpriced. Not ideal for selling.
Lululemon Athletica's IV Rank is 33.5% — meaning current IV is higher than 34% of readings over the past year. This is in the average range — premiums are moderate. Most theta gang traders prefer selling when IV Rank is above 30–50%.
Among Consumer Discretionary peers, Lululemon Athletica has an IV Rank of 33.5%. CMG leads the sector at 52% IV Rank versus Lululemon Athletica's 34%. Both may offer premium selling opportunities depending on other conditions.
Lululemon Athletica'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 (1.00) 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.
When Lululemon Athletica's realized volatility exceeds implied (negative VRP of 0.0pp), it means the stock is genuinely moving more than the options market predicted. This can happen during trend acceleration, sector rotation, or after a fundamental change that the market hasn't fully priced in. For premium sellers, this is a warning: you're being underpaid for the actual risk. Wait for the gap to close — either through RV calming down or IV rising to match reality.