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Glossary · Options

IV rank

Where today’s implied volatility sits between its lowest and highest level of the past year, from 0 to 100.

Why it matters

It tells you if options are cheap or expensive for this stock. Under 30: options are cheap, buying strategies favoured. Over 50: options are rich, selling strategies favoured.

How to read it

One spike a year ago can squash IV rank. IV percentile (share of days with lower IV) is a steadier cross check.

Also called: IVR

Related

Implied volatilityThe yearly volatility that today’s option prices imply. Higher IV means pricier options.IV percentileThe share of days in the past year when implied volatility was lower than today.Credit and debitA debit trade costs money up front; a credit trade pays you up front.

In the Cluenex app, this explanation opens next to every iv rank figure, with the live reading for the stock you are looking at. Open it in Cluenex