VRP · IV/HV ratio
volatility risk premium
The ratio of expected (IV) to actual fluctuation (HV). Above 1, options price in more movement than has happened recently. Buyers pay a premium for uncertainty.
In the screenerShown in the volatility block. After a shock day, an IV/HV above 1.3 costs a point: a panic premium is still priced in.
See it in the screener
The live demo shows every term with example data, right next to the score and its reasons.