IV Rank Calculator
Calculate IV Rank to assess whether implied volatility is elevated or suppressed.
IV Rank Calculator
Upload a CSV file with a single column of historical IV values
What is IV Rank?
IV Rank is a percentile ranking that tells you where current implied volatility stands relative to its historical range.
Formula:
IV Rank = ((Current IV - Min IV) / (Max IV - Min IV)) × 100
Interpretation:
- IV Rank 0-20%: IV is near lows - Consider buying options (long straddle, calendar spreads)
- IV Rank 20-50%: IV is below average - Slightly biased towards selling
- IV Rank 50-80%: IV is elevated - Biased towards selling options
- IV Rank 80-100%: IV is near extremes - Strongly consider selling premium
Trading Implications:
- Buy Options: When IV Rank is low (expensive to sell, cheap to buy)
- Sell Options: When IV Rank is high (expensive to sell, cheap to buy)
- Mean Reversion: Extreme IV Rank often precedes reversions
Pro Tip: Combine IV Rank with price action and other indicators. IV Rank is just one tool in your trading arsenal.
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