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Constellation Brands — Implied volatility rank, VRP edge, and volatility regime
Constellation Brands (STZ) operates in the Consumer Staples sector and has actively traded listed options. Its IV Rank reads 47.0%, mid-range within the past year — neither cheap nor rich. IV Rank 47% is 5pp above the Consumer Staples sector median of 42%. 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
Constellation Brands's IV Rank of 47.0% places premiums in the middle of the 252-day range — neither particularly rich nor cheap. At moderate IV Rank, premium sellers can still find opportunities but should be more selective about strategy and timing. Focus on tickers where VRP confirms overpricing and where the RV regime supports selling. Credit spreads and iron condors work well at moderate IV Rank because they reduce capital requirement while maintaining positive expected value.
Constellation Brands's IV Rank measures where current implied volatility sits relative to its 252-day range. At 47.0%, 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.
Constellation Brands's earnings in approximately 6 days is likely contributing to the current IV level. Pre-earnings IV ramp is a well-documented pattern — implied volatility rises as the binary event approaches, then collapses (crushes) after the announcement. The portion of IV attributable to earnings makes the IV Rank less comparable to non-earnings periods. Premium sellers should separate the "structural" IV Rank from the "event" premium to make informed decisions about whether to trade through or around the earnings date.
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.
Constellation Brands's IV Rank is 47.0%, meaning current implied volatility is higher than 47% of readings over the past 252 trading days. This is in the average range — premiums are neither particularly rich nor cheap.
Constellation Brands's Volatility Risk Premium (VRP) is +7.0pp. Yes — IV significantly exceeds realized volatility, meaning options are overpriced relative to actual movement. This is the statistical edge premium sellers seek.
Constellation Brands's IV Rank is 47.0% — meaning current IV is higher than 47% 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 Staples peers, Constellation Brands has an IV Rank of 47.0%. EL leads the sector at 57% IV Rank versus Constellation Brands's 47%. Both may offer premium selling opportunities depending on other conditions.
Constellation Brands'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 (0.82) 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.
Constellation Brands's RV Ratio of 0.82 indicates calming volatility — recent price movement is smaller than the longer-term baseline. When RV is declining but IV hasn't adjusted fully, the gap between them (VRP) widens, benefiting premium sellers. Calming volatility often precedes further IV compression, making current IV levels relatively expensive. This is a favorable environment for selling premium.
With earnings approximately 6 days away, Constellation Brands's IV Rank includes a significant earnings premium component. IV typically ramps 7–14 days before earnings as hedgers and speculators bid up option prices. This inflates the IV Rank above where it would be without the upcoming event. After earnings, IV typically crushes — often by 20–40% — as uncertainty resolves. The current IV Rank should be interpreted as "event-elevated" rather than a pure measure of the stock's structural volatility level.
Free embeddable tool: IV Rank Gauge — add daily IV Rank to any site. No signup, no API key.
IV 30d (38.1%) − HV 20d (31.1%) = +7.0pp
Why two RV values? ORATS HV uses 20-day close-to-close. Yang-Zhang uses OHLC. VRP computed with ORATS HV. Δ3.7pp.
HV 20d (31.1%) ÷ IV 30d (38.1%). Below 1.0 = options overpriced.
| Window | Value | vs 60d ⓘ |
|---|---|---|
| RV 10d (YZ) | 38.3% | +24.5% |
| RV 20d (YZ) | 34.8% | +13.2% |
| HV 20d (ORATS) VRP | 31.1% | +1.2% |
| RV 60d (YZ) | 30.7% | baseline |