Forget the hype about "AI-powered signal systems" that cost $200/month. The real edge in options trading comes from understanding one simple concept: relative value. The Options Oracle is built to find exactly that.
Why IV Percentile Matters More Than IV Rank
Most retail traders look at Implied Volatility (IV) Rank. It's not wrong, but it's incomplete. IV Rank tells you where current IV is relative to its 52-week high and low.
But what if IV has been stuck in a narrow range for months? The rank might look high, but is it really expensive?
IV Percentile answers a better question: "What percentage of time has IV been below current levels over the past year?"
An IV Percentile of 80% means IV has been lower than current levels 80% of the time in the past year. Now that's a signal worth trading.
Setting Up The Scanner
Here's how to configure the Options Oracle to find these opportunities:
# Sample configuration for Options Oracle
{
"underlyings": ["NIFTY", "BANKNIFTY"],
"min_iv_percentile": 75,
"max_iv_percentile": 95,
"days_to_expiry": [7, 30],
"min_oi": 1000,
"scan_interval": 15 # minutes
}This config will find options in NIFTY and BANKNIFTY with IV Percentile between 75-95%, expiring in 1-4 weeks, with sufficient open interest, scanning every 15 minutes.
How to Trade These Signals
High IV Percentile doesn't mean " immediately sell options." It means "options are relatively expensive," which suggests:
- Consider credit spreads (if you have a directional bias)
- Look at iron condors (if you expect range-bound trading)
- Avoid buying straight calls/puts (you're paying premium)
- Consider ratio spreads for defined risk
The Oracle gives you the edge—the rest is up to your strategy.
Real Example From Last Week
On October 20, BANKNIFTY 44,000 calls expiring October 26 showed:
- IV: 28.5%
- IV Rank: 65%
- IV Percentile: 82%
While IV Rank looked moderately high, IV Percentile showed these options were actually in the top 18% of expensive options over the past year. Those who sold premium here caught the subsequent IV crush as BANKNIFTY settled into a range.