I receive ideas and requests every day from Slopers, but I’ve never received such a consistent request as the one for IV Rank. There has been a tremendous clamoring for it lately, so I am delighted to let you know that we’ve done it, and in typical Slope style, we’ve done it better than anyone else.
For those unacquainted with IV Rank, the concept is simple. Volatility, which SlopeCharts already has here, measures the implied volatility of a given financial instrument based upon its options pricing. The volatility varies from instrument to instrument, but for any one instrument, it’s the relative volatility that is of interest to us.
The range is from 0 to 100. One extreme, 0, means that for this particular instrument, it is at the lowest level of volatility for the year. The other extreme, 100, means that the volatility is at its relative maximum (and thus, for you option sellers, is probably an appealing candidate). The line chart is confined by these two extremes so you can see where volatility is, relatively speaking, for this instrument.
To activate the IV Rank chart, just choose it from the Tools menu.
Below, for example, is the SPY with its IV Rank. Notice how SlopeCharts, in its oh-so-awesome fashion, tints the zones of the IV Rank so you can get an immediate sense as to how hot or cold the volatility is running right now. At the moment, volatility is extremely low (which is the case for just about all of this government-captured stock “market” of ours).
On the other hand, marijuana stocks have been getting blasted, so as shown with Tilray, the relative volatility has been higher than the likes of the market in general..
Below is just the IV Rank graph itself, for the sake of detail. The chart is broken into five equal zones (0-20, 20-40, 40-60, 60-80, and 80-100). It couldn’t be any simpler to interpret.
I know that many of you, particularly options traders, are going to be thrilled with this addition. For the moment, it is free to use by anyone, although in the very near future I’m going to be putting up mile-high walls around this and other newer features for access only to specific premium membership levels.
In the meanwhile, I’d love to read your comments and feedback.