Is LII options pricing rich or cheap right now?

As of May 29, 2026, Lennox International Inc. (LII) ATM IV is 40.0% against 20-day realized volatility of 35.1%. IV rank is 51.3%. LII options are pricing in more volatility than the stock has recently realized: a positive variance risk premium worth 4.9 vol points.

What is the LII variance risk premium?

The variance risk premium is the persistent gap between implied and subsequently realized volatility. In equity markets it averages positive because option sellers demand compensation for bearing variance shocks. LII is currently priced consistently with this premium, which is one input to whether short-vol or long-vol structures carry their typical edge.

What does LII IV rank mean for strategy selection?

IV rank normalizes the current ATM IV to its 1-year range: 0% is the low, 100% is the high. LII's current rank of 51.3% signals where current pricing sits in its own 1-year history. High-rank regimes typically favor premium-selling structures (credit spreads, condors, covered calls); low-rank regimes typically favor premium-buying or long-volatility structures.

Lennox International Inc. (LII) IV/HV History

Comparing implied volatility to historical (realized) volatility reveals whether options are priced rich or cheap relative to actual price movement. Persistent gaps can signal trading opportunities.

Lennox International Inc. (LII) operates in the Industrials sector, specifically the Construction industry, with a market capitalization near $17.51B, listed on NYSE, employing roughly 5,400 people, carrying a beta of 1.23 to the broader market. Lennox International Inc. Led by Alok Maskara, public since 1999-07-29.

Snapshot as of May 29, 2026.

Spot Price: $506.16
ATM IV: 40.0%
HV 20-Day: 35.1%
HV 60-Day: 46.1%
IV Rank: 51.3%
IV Percentile: 84.1%

As of May 29, 2026, Lennox International Inc. (LII) ATM implied volatility is 40.0%. 20-day realized volatility is 35.1%, producing an IV-HV spread of +4.9 vol points. Options are pricing in more volatility than the stock has recently delivered, the volatility risk premium. IV rank is 51.3%.

How LII iv/hv history Data Feeds Strategy Selection

Strategy selection on Lennox International Inc. options does not derive from any single metric in isolation. The iv/hv history view above sits inside a broader read: ATM IV currently sits at 40.0% and dealer gamma exposure is positive, so dealer hedging is mechanically mean-reverting. Combine the iv/hv history data here with the volatility-skew surface, dealer-gamma exposure, max-pain level, and upcoming-events calendar to build a positioning thesis. Risk-defined structures (credit spreads, debit spreads, iron condors) are usually safer than naked positions while the regime is uncertain; the data on this page anchors the inputs but does not by itself constitute a trade thesis.

How to read the LII IV vs HV chart

The dual-line chart above tracks ATM implied volatility (forward-looking, what the chain is pricing) against 20-day realized historical volatility (backward-looking, what actually happened). ATM IV currently prints at 40.0%, 51.3% IV rank, against 35.1% realized over the trailing 20 trading days. Implied is pricing above realized by 4.9 vol points, the typical variance-risk-premium positive state in which premium sellers earn the gap. Persistent IV-above-HV is the variance-risk-premium-positive state typical of equity markets; persistent IV-below-HV is rare and usually marks underpriced vol that often expands.

LII IV/HV regimes and trade selection

LII IV rank at 51.3% sits mid-range - no structural edge from rank alone. Strategy choice should follow event calendar and the dealer-positioning read.

Using LII vol history alongside the term structure

The IV/HV gap on this page captures the level of premium; the term-structure slope on the volatility page captures its shape across expirations. Backwardation (negative slope -0.022) indicates acute near-term event risk - near-dated tenors price disproportionate vol. Pair the rank read with the slope read with the event calendar to choose the right tenor for the structure.

LII IV/HV signal in volatility-cycle context

Equity-vol cycles tend to compress and expand on multi-month timeframes: a typical sequence runs low-IV-rank consolidation (months of flat tape, decaying premium) into a vol-expansion catalyst (earnings miss, macro shock, regime change) into elevated-IV-rank stress (premiums fat, dispersion high) back to mean-reverting compression. LII's 51.3% IV rank places the ticker in the mid-range of its 1-year window - no strong cycle-position signal. The ratio of HV-20 (35.1%) to HV-60 (46.1%) gives a second cycle indicator: when 20-day exceeds 60-day, recent realization is running hotter than the trailing-quarter average - typically a sign that recent days have already started expanding vol regardless of where IV rank prints. Use the time series above to spot inflection points: meaningful IV/HV gap closures and openings tend to precede regime shifts by a few sessions.

Learn how implied vs realized volatility is reported and how to read the data →

Daily ATM implied volatility and 20-day realized (historical) volatility for LII over the last ~38 trading days. The IV-HV gap measures the variance risk premium - when IV trades persistently above realized HV, premium-sellers earn the spread; when IV dips below HV, vol is structurally underpriced.

Daily values from end-of-day option_ticker_snapshots. Series sparse on illiquid tickers reflects gaps in the upstream end-of-day options data feed.

Most recent 15 trading days (descending). Older history appears in the chart above.

Date	ATM IV	HV 20d	HV 60d	IV Rank
May 29, 2026	40.0%	35.1%	46.1%	51.3%
May 28, 2026	40.8%	39.2%	45.9%	53.9%
May 27, 2026	40.4%	39.0%	45.9%	52.6%
May 26, 2026	39.8%	40.1%	46.0%	50.7%
May 22, 2026	38.6%	37.6%	45.2%	46.8%
May 21, 2026	39.2%	37.6%	45.3%	48.8%
May 19, 2026	38.5%	37.4%	45.2%	46.5%
May 18, 2026	38.5%	35.9%	45.0%	46.5%
May 15, 2026	37.2%	36.1%	45.0%	42.3%
May 14, 2026	36.7%	34.7%	44.9%	40.7%
May 13, 2026	37.4%	35.0%	45.2%	43.0%
May 12, 2026	37.2%	45.4%	45.2%	42.3%
May 11, 2026	49.0%	45.5%	45.2%	80.3%
May 8, 2026	39.2%	47.1%	46.0%	48.8%
May 7, 2026	37.4%	55.4%	47.3%	43.0%

Frequently asked LII iv/hv history questions

Is LII options pricing rich or cheap right now?: As of May 29, 2026, Lennox International Inc. (LII) ATM IV is 40.0% against 20-day realized volatility of 35.1%. IV rank is 51.3%. LII options are pricing in more volatility than the stock has recently realized: a positive variance risk premium worth 4.9 vol points.
What is the LII variance risk premium?: The variance risk premium is the persistent gap between implied and subsequently realized volatility. In equity markets it averages positive because option sellers demand compensation for bearing variance shocks. LII is currently priced consistently with this premium, which is one input to whether short-vol or long-vol structures carry their typical edge.
What does LII IV rank mean for strategy selection?: IV rank normalizes the current ATM IV to its 1-year range: 0% is the low, 100% is the high. LII's current rank of 51.3% signals where current pricing sits in its own 1-year history. High-rank regimes typically favor premium-selling structures (credit spreads, condors, covered calls); low-rank regimes typically favor premium-buying or long-volatility structures.