Contraction Require IV Rank Jump
Setting key
contraction_require_iv_rank_jump
Default
20
What it does
Minimum recent IV Rank jump (over the last few days) required to confirm the spike is fresh. Prevents the bot from entering a name that has been sitting at elevated IV for weeks: the mean-reversion thesis requires a recent catalyst, not a high plateau.
When to change it
Lower to 10 to catch slower-building spikes. Raise to 30 for stricter freshness requirements.
Safe range
10 (permissive) to 30 (strict freshness).
Example
XLF has had IV Rank around 75 for two weeks. A new spike brings it to 82. The jump is only 7 points, below the 20-point threshold, so the bot does not enter. A name jumping from 40 to 82 in two days (42-point jump) qualifies.