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IV rank

Where current implied volatility sits within its 52-week high-low range, from 0 to 100.

OptionsIntermediate

Definition

An IV rank of 80 means IV is 80% of the way from its yearly low to its yearly high, so options are expensive relative to the past year. Low readings mean they are relatively cheap.

Formula

IV rank = (current IV - 52-week low) / (52-week high - 52-week low) x 100

Watch out for

IV rank depends on the one-year window, so a single extreme event can distort it. IV percentile is a related measure.

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