IV/HV Ratio
Constant-maturity ATM implied volatility divided by annualized close-to-close realized volatility (HV) over hvWindow trading days. Values > 1 mean options are pricing more vol than recently realized.
IV/HV Ratio
Definition
Constant-maturity ATM implied volatility divided by annualized close-to-close realized volatility (HV) over hvWindow trading days. Values > 1 mean options are pricing more vol than recently realized.
Parameters
Asset, HV lookback days (default 20)
Output range: > 0
Example
`IVHVRatio(AAPL, 20) > 1.2` (implied vol > 20% richer than 20-day realized)
Usage notes
Classic premium-selling filter: require IV/HV elevated before short strangles / iron condors.
Full indicator reference