High IV Rank Covered Calls
IV percentile ≥70 · Premium-rich options · Best conditions for covered call selling
High implied volatility is the single most important condition for covered call selling. When a stock's IV percentile (IVP) is above 70, options are pricing in more uncertainty than usual — and you get paid more for taking on assignment risk. The candidates below are filtered to stocks with IV rank ≥70th percentile, representing the richest premium opportunities in today's market.
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Open full screener →IV Rank vs. IV Percentile — What You're Seeing
The scanner uses IV percentile (IVP) — the percentage of past trading days where IV was lower than today's reading. An IVP of 80 means current IV is higher than 80% of all daily readings over the past year.
Why it matters: When IVP is high, as IV mean-reverts back to normal levels your short call loses value from both time decay AND IV compression — a double tailwind for your position.
Frequently Asked Questions
What is a good IV percentile for selling covered calls?
IV percentile above 50 is generally favorable; above 70 is ideal. The higher the IVP, the more premium you collect for the same delta strike. Most systematic covered call traders screen for IVP > 50 before entering.
What causes high IV in a stock?
Common causes: upcoming earnings, product announcements, regulatory decisions, macro sensitivity, recent price moves that increased realized volatility, or market-wide fear spikes.
Should I avoid selling covered calls before earnings if IV is high?
It depends. High IV before earnings means more premium — but if the stock moves sharply post-earnings, you face assignment or large unrealized losses. Many traders wait until post-announcement when IV has collapsed and direction is clearer.
What happens to my covered call when IV drops?
IV crush benefits covered call sellers. When IV drops, time value decreases faster than the stock price change alone would imply — you can often close the position at a profit earlier than expected.