The Lab
May 25, 2026

IV Momentum Tool

Detects What Happens After Sharp IV Moves

This tool helps you predict how a stock is likely to move by looking at changes in implied volatility.

Implied volatility shows how expensive options are right now and how much risk the market expects. When IV rises, it usually means traders are getting more worried and expect bigger price moves. When IV falls, it usually means the market is feeling calmer.

Most traders only look at whether IV is high or low. However, how much IV changes from one day to the next can often be more important.

This tool looks at both the level and the magnitude of a stock's IV change and compares it to similar changes in the past. It then shows you how the stock usually moves afterwards.

What the Tool Shows You

Projection

45-Day Projected Price Cone

Projects a potential price range over the next 45 days by applying historical forward returns from past similar setups.

Probability

Probability Graph

Shows how often prices rose or fell after similar setups in the past.

Scan

Auto-Detection

The tool automatically scans the market and highlights stocks with the strongest setups for the day ahead.

Log

Past Similar Setups

A full log of every past day when conditions were similar.

How Traders are using the IV Momentum Tool

1

Morning Scan

Start the day by checking whether the tool is highlighting any unusual activity in your favorite stocks. This helps you quickly identify which names may be setting up for a potential move.

2

Review the Price Cone

See how price has historically behaved after similar setups. This gives you a realistic view of what typically happens next instead of relying on guesswork.

3

Size the move with the bar graph

Switch to Bar Graph view and set your target price level. The bars show how often similar setups reached that distance by upcoming expirations. Toggle between "By Touch" and "By Close" depending on your strategy.

4

Review the chart and table log for context

Review the historical matches before taking a position. Pay attention to how many comparable setups exist and whether they occurred during similar market conditions. This helps you determine how much weight to give the current signal.

Check if your favorite stock's implied volatility moved today

Open IV Momentum Tool

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interested in learning more about our tools.