What is IV rank and how is it calculated?
IV rank is a measure that shows where the current implied volatility of an underlying asset stands relative to its range over the past 30 days. An IV rank of 0 means current IV is at its 30-day low, while an IV rank of 100 means current IV is at its 30-day high.
How IV rank is calculated
- IV rank is calculated by comparing the current IV to the highest and lowest IV observed over the past 52 weeks
- Formula: IV rank = (current IV − 30-day IV low) ÷ (30-day IV high − 30-day IV low) × 100
- An IV rank of 0 means current IV equals the 30-day low
- An IV rank of 100 means current IV equals the 30-day high
How to use IV rank in options analysis
- A high IV rank (above 50) suggests implied volatility is elevated relative to recent history, which may favor option-selling strategies
- A low IV rank (below 50) suggests implied volatility is depressed relative to recent history, which may favor option-buying strategies
- IV rank helps compare relative volatility levels across different underlyings on a standardized 0–100 scale
Where IV rank appears in OptiView
- Displayed as a column in the OptiScan options scanner results table
- Available as a filter in OptiScan to screen for contracts with high or low IV rank
- Shown over time and as a histogram in the Volatility panel