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Current options analysis: weak signal for selling premium on MCK.
No strategies meet current entry criteria.
McKesson Corp. (MCK) is a Healthcare stock with actively traded listed options. IV Rank 22% is 14pp below the Healthcare sector median of 36%. MCK put/call walls.
MCK Edge Score: 70/100 — data coverage is strong, but current trading conditions are unfavorable.
No strategies meet entry criteria. Consider waiting for better conditions.
MCK See full analysis →MCK conditions are unfavorable — but other tickers may have edge today
When conditions are weak for one stock, others in the S&P 500 often show strong setups. Check today's top-ranked candidates instead of forcing a trade here.
Earnings impact: Raw VRP (+9.7pp) includes an IV premium from upcoming earnings (19d). Excluding this premium, VRP is +0.4pp. The 9pp gap is earnings-driven — not a structural edge.
Weak — Unfavorable for premium selling
EM = Price × RV₂₀d × √(t/252). Uses Yang-Zhang 20d realized volatility (not implied). ±1σ (68% confidence).
Conditions are weak — explore alternatives or wait for a better setup.
Volatility
IV Rank, IV vs RV comparison
Volatility Risk Premium edge
Volatility smile & skew shifts
IV curve across expirations
Strategy
P&L calculator for any strategy
Ranked strategies & selling conditions
Best CC strikes, premiums & scores
CSP → assignment → CC calculator
Early assignment probability & alerts
Flow & Events
Support & resistance from OI
IV crush & historical earnings
Price range & strike placement
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.
McKesson Corp. is currently one of the calmest stocks in the S&P 500 by our RV ratio measure. Yang-Zhang realized volatility shows 38.9% over 20 days versus a 29.0% 60-day baseline. The RV Ratio (HV 20d / IV 30d) is 0.69, placing it in the "sweet spot" for premium sellers. As a relatively predictable large-cap with moderate volatility, MCK at this ratio suggests a period of consolidation where options may be significantly overpriced.
Looking at the past 18 trading days, MCK's RV ratio has been trending lower. The ratio ranged from 1.17 to 1.05, with the current reading of 0.69 near the lower end. 0 of 18 days showed seller-favorable conditions. A gradual decline is often more sustainable than a sharp drop, suggesting MCK may remain in this lower-vol regime for a while.
Based on current realized volatility, traders can expect MCK to move approximately ±$21.16 (2.5%) per day and ±$47.32 (5.5%) over five trading days. At a stock price of $864.14, 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 MCK favor a short strangle approach. Very calm stock (ratio 0.69) with strong VRP edge (+9.7%). Ideal for selling premium on both sides — stock unlikely to move beyond expected range. This neutral strategy profits from time decay as long as MCK stays within the breakeven range. The current RV Ratio suggests options are overpricing movement, which benefits premium sellers on both sides of the trade.
MCK has earnings in roughly 19 trading days. While not immediate, this proximity means implied volatility may begin expanding as the market prices in event risk. Premium sellers should factor this into DTE selection — positions expiring before earnings avoid the binary risk entirely, while positions spanning the event carry significantly higher uncertainty.
Healthcare stocks often show lower baseline volatility, but can spike on FDA decisions, drug trials, or policy changes. MCK specifically a Healthcare sector component tracked by VolRadar. Understanding sector-level volatility dynamics helps premium sellers diversify their positions across different correlation regimes.
VolRadar tracks MCK 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). All analysis is for educational purposes only and does not constitute financial advice. Options trading involves significant risk of loss.
More about MCK
McKesson Corp. currently shows a weak premium selling signal because low IV Rank. Consider waiting for conditions to improve. The VRP Analysis page tracks historical premium edge trends that may signal when conditions are turning.
McKesson Corp.'s IV Rank is 22%, indicating relatively cheap options. While premiums are thinner, low IV can present opportunities for option buyers or for sellers who focus on probability rather than absolute premium. See the IV Analysis page for detailed breakdown.
McKesson Corp.'s 5-day expected move is ±5.5% (±$47.32 from $864.14). A wide expected range reflects elevated realized volatility. See the Expected Move page for strike placement guidance and probability analysis.
McKesson Corp. currently shows a weak premium selling signal because low IV Rank (22%). Consider waiting for conditions to improve.
McKesson Corp.'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: 0.69.
McKesson Corp.'s snapshot: IV Rank 22% (low premiums), VRP +9.7pp (options overpriced), RV Ratio 0.69 (calming 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 McKesson Corp.: 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).
Key risks for McKesson Corp. right now: earnings in 19 days — the largest source of overnight gap risk that can blow through short strikes. These risks are worse when combined — for example, selling into earnings with negative VRP removes both your statistical edge and your safety margin. Use VolRadar's sub-pages to contextualize: VRP Analysis for edge confirmation, IV Analysis for premium adequacy, and Expected Move for strike distance guidance.
McKesson Corp.'s Volatility Risk Premium (VRP) is +9.7pp, meaning implied volatility exceeds realized volatility by that amount. A positive VRP indicates options are overpriced relative to actual stock movement — this is the statistical edge premium sellers seek.
Based on Yang-Zhang realized volatility, McKesson Corp. has a 1-day expected move of ±$21.16 (±2.5%) and a 5-day expected move of ±$47.32 (±5.5%). This means the stock is expected to trade between $817 and $911 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 Healthcare tickers →More analysis sections planned — Dark Pool Flow, Unusual Activity, Sector Comparison, and more.