Advance Auto Parts, Inc. (AAP) Volatility Skew
Implied volatility skew shows how IV varies across strike prices for a given expiration. Steeper skews indicate higher demand for downside protection relative to upside speculation.
Advance Auto Parts, Inc. (AAP) operates in the Consumer Cyclical sector, specifically the Specialty Retail industry, with a market capitalization near $2.97B, listed on NYSE, employing roughly 33,200 people, carrying a beta of 1.08 to the broader market. Advance Auto Parts, Inc. Led by Shane O'Kelly, public since 2001-11-29.
Snapshot as of May 15, 2026.
- Spot Price
- $47.35
- ATM IV
- 79.5%
- IV Skew 25Δ
- -0.004
- IV Rank
- 90.3%
- IV Percentile
- 98.0%
- Term Structure Slope
- -0.035
As of May 15, 2026, Advance Auto Parts, Inc. (AAP) at-the-money implied volatility is 79.5%. IV rank is 90.3% (where 0% is the 52-week low and 100% is the 52-week high). IV percentile is 98.0%. The 25-delta skew is -0.004: skew is roughly flat across the 25-delta wings. High IV rank typically favors premium-selling strategies; low IV rank favors premium-buying.
AAP Strategy Selection at Current Volatility Levels
For Advance Auto Parts, Inc. options at 79.5% ATM IV, high IV rank (90.3%) favors premium-selling structures: credit spreads, iron condors, covered calls, cash-secured puts. The risk: a continued vol expansion through high-rank levels is rare but expensive when it happens. Pair the vol-rank read with the dealer-gamma view and the upcoming-events calendar to confirm the strategy fits both the structural regime and the path-dependent risk. The variance risk premium - the persistent gap between implied and subsequently realized vol - is positive in equity markets on average; high IV rank typically reflects a stretch where the premium is wider than usual.
Learn how volatility skew is reported and how to read the data →
AAP highest implied-volatility contracts
| Type | Strike | Expiration | Volume | OI | IV | Bid | Ask |
|---|---|---|---|---|---|---|---|
| CALL | $63.00 | May 22, 2026 | 6 | 153 | 154.3% | $0.30 | $0.90 |
Top 1 contracts from the ORATS-sourced nightly scan; ranked by iv within the broader S&P 500/400/600 + ETF universe.
Frequently asked AAP volatility skew questions
- What is the current AAP ATM implied volatility?
- As of May 15, 2026, Advance Auto Parts, Inc. (AAP) at-the-money implied volatility is 79.5%. IV rank is 90.3% on a 0-100% scale anchored to the 1-year IV range. ATM IV is the volatility input that makes a Black-Scholes-equivalent model reproduce the listed at-the-money option prices.
- Is AAP IV high or low historically?
- IV is elevated relative to its 1-year history, conditions that typically favor premium-selling strategies (credit spreads, iron condors, covered calls).
- What does AAP volatility skew tell options traders?
- Volatility skew is the pattern by which IV varies across strikes for a given expiration. Advance Auto Parts, Inc. skew is roughly flat across the 25-delta wings. Skew matters for risk-defined strategy selection: when downside puts are rich, put-credit spreads capture more premium; when upside calls are rich, call-credit spreads or covered-call writes harvest more.