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Today, TT has an IV Rank of 43%, placing it in the moderate range for options analysis.
Trane Technologies plc — Implied volatility rank, VRP edge, and volatility regime
Trane Technologies plc (TT) is a Industrials stock with actively traded listed options. Its IV Rank reads 42.5%, mid-range within the past year — neither cheap nor rich. IV Rank 43% is 5pp below the Industrials sector median of 48%. Average IV can work with directional or defined-risk structures. TT expected move analysis.
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
Trane Technologies plc's IV Rank of 42.5% 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.
Trane Technologies plc's IV Rank measures where current implied volatility sits relative to its 252-day range. At 42.5%, 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.
Trane Technologies plc's implied volatility overprices realized movement by 10.3pp — a large gap that represents the core edge for premium sellers. The options market expects significantly more volatility than the stock is delivering, creating systematic overpricing that short premium strategies capture. Calming realized volatility amplifies this edge further. See the VRP Analysis page for the full historical spread and trend direction.
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.
Trane Technologies plc's IV Rank is 42.5%, meaning current implied volatility is higher than 43% of readings over the past 252 trading days. This is in the average range — premiums are neither particularly rich nor cheap.
Trane Technologies plc's Volatility Risk Premium (VRP) is +10.3pp. Yes — IV significantly exceeds realized volatility, meaning options are overpriced relative to actual movement. This is the statistical edge premium sellers seek.
Trane Technologies plc's IV Rank is 42.5% — meaning current IV is higher than 43% 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 Industrials peers, Trane Technologies plc has an IV Rank of 42.5%. XYL leads the sector at 59% IV Rank versus Trane Technologies plc's 43%. Both may offer premium selling opportunities depending on other conditions.
Trane Technologies plc'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 (0.72) 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.
Trane Technologies plc's RV Ratio of 0.72 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 8 days away, Trane Technologies plc'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 (36.2%) − HV 20d (25.9%) = +10.3pp
HV 20d (25.9%) ÷ IV 30d (36.2%). Below 1.0 = options overpriced.
| Metric | Value |
|---|---|
| HV 20d (ORATS) VRP | 25.9% |
| IV 30d (ORATS) | 36.2% |