Directional Max IV Rank

Setting key
directional_max_iv_rank
Default
60

What it does

Upper IV Rank ceiling for directional engine entries. When set, the directional engine will not enter a position on a name whose IV Rank exceeds this value. This prevents entering directional debit spreads or funded pairs when premium is so expensive that the debit cost overwhelms the potential reward. At very high IV Rank the market is pricing in a large move, so if you have a directional view, the debit structures become expensive.

When to change it

Raise it toward 70-100 if you want the directional engine to keep firing when IV is very elevated. Lower it toward 40-50 if you only want directional entries when IV is moderate. Leave blank for no ceiling at all.

Safe range

40 (only trade directional when IV is moderate) to 100 (no meaningful ceiling). Leave blank for no ceiling.

Example

NVDA IV Rank is 85 after a selloff. With the default directional_max_iv_rank=60, the directional engine skips NVDA: premium is too expensive for debit structures. Raise the ceiling to 90 and it evaluates NVDA normally.

Financial Information Disclaimer

This site provides general information about ACondor, a software tool for automating options trading strategies. Nothing on this site is investment, tax, or financial advice. Options trading involves substantial risk of loss. Past behavior of any strategy does not guarantee future results. Consult a licensed financial professional before trading options. ACondor may earn a commission from affiliate links at no extra cost to you.