I don't want to derail this thread as the Zone Concept and Implied Momentum are premised on a longer term approach but I'll give a little to go on. Jim Yates used IV "as an input" to create a model which placed securities into 6 Zones. Thinking of a bell curve, Zones 1 and 6 are 2+ Standard Devs from a normal distribution. This does notmean that having a high IV puts you in zone 1. The model factors in price performance as well and does an amazing job of placing securities properly upon the curve- what I mean by this is that severely underperforming(undervalued) securities with high IVs end up in zone 1 whereas those that are outperforming (overvalued) with high IVs end up in Zone 6.
Since the sector ETFs now have a fairly liquid options market and decent pricing, IVs can be easily calculated and the sectors placed in their respective zones. Mr. Yates opined that specific options strategies fit securities based on their respective zone positioning as seen below:
The Implied Momentum calculation was used to show a shift in a securities "bias". From my understanding, Implied Momentum will lead a securities price movement as investors feel the move has gone too far and do not see the potential for further decline/advance. An example would be to buy calls on Zone 1 stocks who's IM changed from Negative to positive. Below is a snapshot of several sectors present Zone, IV and IM scores so you can see that a high IV doesn't necessarily mean good or bad.
The whole concept is very similar to JDKs work but adds a different elements. I use this tool primarily for position management decision making and would like the visualization of RRG applied.