Options TradingBeta

Find mispriced volatility

Options Edge Finder uses GARCH volatility forecasting to identify when implied volatility diverges from statistical reality — surfacing mispriced options as clear trade-or-pass decisions.

The Struggling Moment

IV is the market's guess, not the truth

Options are priced on implied volatility — the market's consensus forecast. But consensus is often wrong. Without an independent volatility model, you're trading the crowd's opinion, not the math.

What you do today:

  • Eyeballing IV percentile without a forecast to compare against
  • Selling premium based on 'IV is high' without knowing if it's high enough
  • Using free screeners that show IV rank but no independent model
  • Manually comparing realized vs implied vol in spreadsheets
The Solution

Independent volatility forecast meets market pricing

GARCH model produces a statistical volatility forecast. Compare it to the market's implied volatility. When they diverge, that's the edge.

GARCH Forecasting

Statistical volatility model trained on historical returns.

IV Comparison

Side-by-side: what the model says vs. what the market prices.

Mispricing Signal

When GARCH and IV diverge significantly, that's a trade candidate.

Trade/Pass Decision

Clear output: trade direction, magnitude of edge, and confidence.

Methodology

GARCH(1,1) volatility modelIV surface analysisStatistical edge scoring