AlphaGBM AlphaGBM IV Rank
Prerequisites
- API Key: Set env
ALPHAGBM_API_KEY(formatagbm_xxxx...). - Base URL: Default
https://alphagbm.zeabur.app. Override with envALPHAGBM_BASE_URL.
What This Skill Does
Calculates IV Rank and IV Percentile for any ticker, placing current implied volatility in historical context. Answers the key question: "Is IV high or low right now, and what should I do about it?"
Key Metrics
| Metric | Formula | What It Means |
|---|---|---|
| IV Rank | (Current IV - 52w Low) / (52w High - 52w Low) x 100 | Where IV sits in its annual range. 0 = at the low, 100 = at the high |
| IV Percentile | % of days in past year where IV was lower than today | What % of the time IV was cheaper than now. 80 = IV was lower 80% of the time |
| Current IV | 30-day ATM implied volatility | The market's current expectation of annualized movement |
| IV 52w High | Highest 30-day IV in past 252 trading days | Peak IV -- usually during selloffs or events |
| IV 52w Low | Lowest 30-day IV in past 252 trading days | Trough IV -- usually during calm, grinding markets |
| HV/IV Ratio | Historical Volatility / Implied Volatility | >1 means realized vol exceeds implied (IV may be cheap) |
IV Zones and Trading Signals
| IV Rank | Zone | What It Means | Suggested Action |
|---|---|---|---|
| 80-100 | Very High | IV is near its annual peak -- options are expensive | Sell premium: short strangles, iron condors, credit spreads |
| 60-80 | High | IV is elevated -- above-average option prices | Lean toward selling, but selective; good for covered calls |
| 40-60 | Moderate | IV is in the middle -- neither cheap nor expensive | Strategy-neutral; use directional view to decide |
| 20-40 | Low | IV is depressed -- options are cheap | Lean toward buying; good for debit spreads, long straddles |
| 0-20 | Very Low | IV is near its annual trough -- options are very cheap | Buy premium: long straddles, debit spreads, calendars (sell back month) |
API Endpoint
IV Snapshot (instant, no quota cost)
GET /api/options/snapshot/<SYMBOL>
Returns: ATM IV, IV Rank, HV 30d, VRP, VRP level. This endpoint is free and does not count against your analysis quota.
Volatility Risk Premium (VRP)
VRP = Implied Vol - Historical Vol
VRP measures the gap between what the market expects (IV) and what actually happens (HV). It is a key signal for whether to sell or buy premium.
| VRP Level | Value | Seller | Buyer |
|---|---|---|---|
| very_high | >=15% | Very favorable | Unfavorable |
| high | 5-15% | Favorable | Slightly unfavorable |
| normal | +/-5% | Neutral | Neutral |
| low | -15% to -5% | Unfavorable | Favorable |
| very_low | <-15% | Very unfavorable | Very favorable |
How to Use
Input
- Required: Ticker symbol
- Optional: Lookback period (default 252 days), IV measure (30-day ATM, 60-day, or custom)
Output Structure
{
"ticker": "AAPL",
"price": 218.45,
"iv_current": 28.5,
"iv_rank": 42,
"iv_percentile": 55,
"iv_52w_high": 48.2,
"iv_52w_low": 18.8,
"iv_52w_mean": 30.1,
"hv_30d": 25.2,
"hv_iv_ratio": 0.88,
"zone": "moderate",
"signal": "No strong IV edge. Use directional conviction to choose strategy.",
"iv_history": {
"dates": ["2025-04-01", "2025-04-02", "..."],
"iv_values": [32.1, 31.8, "..."],
"hv_values": [28.5, 28.3, "..."]
},
"notable_events": [
{"date": "2026-01-28", "iv": 48.2, "event": "Earnings spike"},
{"date": "2025-08-05", "iv": 44.1, "event": "Market selloff"}
]
}
Example Queries
| User Says | What Happens |
|---|---|
| "IV rank AAPL" | IV rank, percentile, zone, and trading signal |
| "Is NVDA IV high?" | IV rank + zone classification + comparison to 52w range |
| "IV percentile SPY" | Percentile with historical context |
| "Historical IV TSLA" | Full 252-day IV history with HV overlay |
| "Is volatility cheap for META?" | IV rank + HV/IV ratio + buy/sell recommendation |
| "Should I sell premium on QQQ?" | IV rank-based answer with suggested strategies |
Mock Data
Demo tickers available without API key: AAPL, NVDA, SPY, TSLA, META. IV history uses realistic 252-day data from mock-data/.
Related Skills
- alphagbm-vol-surface -- Full 3D IV landscape across strikes and expirations
- alphagbm-vol-smile -- IV skew for a specific expiration
- alphagbm-options-strategy -- IV zone informs whether to buy or sell premium
- alphagbm-options-score -- IV attractiveness is a key scoring factor
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