Volatility
What is IV Rank (IVR)?
Shows where current IV sits within its 52-week range as a percentage.
📖 Complete Definition
IV Rank measures where current implied volatility falls within its 52-week high-low range, expressed as a percentage from 0-100. An IV Rank of 80 means current IV is closer to the yearly high than low. Traders use IV Rank to determine if options are relatively expensive (high IVR = good for selling) or cheap (low IVR = good for buying).
📐 Formula
IV Rank = (Current IV - 52-week Low IV) / (52-week High IV - 52-week Low IV) × 100
Examples
- →IV Rank of 90% suggests options are expensive relative to the past year
- →IV Rank of 10% suggests options are cheap relative to the past year
❓ Frequently Asked Questions
What is a good IV Rank for selling options?
Many traders look for IV Rank above 50% to sell premium. Above 80% is considered very high and potentially ideal for premium selling strategies.
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