Volatility Alert : 46 Stocks Showing a High IV Percentile

<p>Volatility can be an option trader's best friend or worst enemy, depending on how it's approached.</p>
<p>High implied volatility percentile signals that options prices are elevated compared to their historical norms, creating unique opportunities for those who know how to capitalize on them.</p>
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<p>Whether you're selling premium to take advantage of inflated option prices or seeking sharp price swings for directional trades, understanding which stocks have unusually high IV is crucial.</p>
<p>To get an accurate picture of stocks with a high implied volatility percentile, we can use the Stock Screener.</p>
<p>These elevated readings suggest the options market is pricing in significant potential price movements, whether due to upcoming earnings announcements, sector-specific developments, or broader market dynamics.</p>
<p>For traders considering volatility-based strategies, these stocks warrant particular attention as they may offer enhanced premium collection opportunities, though careful position sizing and risk management remain crucial.</p>
<p>Using The Stock Screener To Find High Volatility Stocks</p>
<p>We currently have 46 stocks showing an IV percentile above 80.</p>
<p>We can set the following filters using the Stock Screener to find stocks with a high implied volatility percentile.</p>
<ul>
<li> <p class="yf-1fy9kyt">Total Call Volume 5,000</p></li>
<li> <p class="yf-1fy9kyt">Market Cap greater than 50 billion</p></li>
<li> <p class="yf-1fy9kyt">IV Percentile greater than 80%</p></li>
</ul>
<p>This screener gives us the following stocks ranked from highest IV Percentile to lowest:</p>
<p>How To Use IV Percentile</p>
<p>Generally, when implied volatility percentile is high, focusing on short volatility trades such as iron condors, short straddles, and strangles is better.</p>
<p>It’s also a good idea to watch the upcoming earnings dates as stock can make big moves following earnings announcements.</p>
<p>Iron Condor Screener</p>
<p>Let’s run an iron condor screener for the above stocks and analyze the results.</p>
<p>Let’s look at the first line item on Micron Technology (MU).</p>
<p>Using the Marh 20 expiry, the trade would involve selling the $300 put and buying the $250 put. Then on the calls, selling the $600 call and buying the $650 call.</p>
<p>The price for the condor is $2.83 which means the trader would receive $283 into their account. The maximum risk is $4,717 for a Risk/Reward ratio of 16.67 to 1 with a Loss Probability of 9.2%.</p>