IV Rank

IV Rank is a metric that indicates the current level of implied volatility relative to its historical range over a specific period. It provides context to the current implied volatility value, helping traders understand if volatility is high or low compared to the past year.

An IV Rank of 100 means current implied volatility is at its highest point in the chosen timeframe, while 0 means it is at its lowest. This is more useful than raw implied volatility, which can be misleading without historical context.

Traders use IV Rank to decide whether to employ premium-selling strategies or premium-buying strategies. It helps normalize volatility data across different assets and timeframes.