Market Measures - November 17, 2025 - Price Is Noise, IV Is Signal

A comprehensive study comparing IWM and SPY revealed that when normalized for IV-adjusted notional value (with SPY's value approximately double IWM's), both ETFs show remarkably similar win rates (71-72%). Despite IWM offering higher premiums with greater volatility than SPY, their risk-reward ratios become nearly identical when properly adjusted.