This HV/IV indicator helps you to select an opt Option Strategy. It creates 5 areas & each area defines the present status of the option premium, which varies from Very Low to Very High. From the bottom, (Option Premium is)
Area 1. Very Low Area 2. Low Area 3. Fair Area 4. High Area 5. Very High
Find which area, current Implied Volatility (User Input) belongs in & choose the option strategy accordingly. Implied Volatility is marked in Black colour circles.
Kindly note, Prior knowledge of Options, Volatility (Historical & Implied) is mandatory to use this indicator. This is shared for education purpose only.