IV Percentile & IV Rank
Measure whether options are cheap or expensive relative to historical implied volatility.
Frequently Asked Questions
What is IV Percentile?
IV Percentile shows where current IV ranks historically. Below 20 means options are cheap relative to history; above 80 means they are expensive.
Report a Problem
Found a bug or have a suggestion? Help us improve this tool.
What is this tool?
IV Percentile and IV Rank measure where current implied volatility sits relative to its own historical range over the past year. IV Percentile calculates the percentage of days when IV was lower than today. IV Rank compares the current IV to the high-low range. Values above 50 suggest options are relatively expensive; values below 30 suggest they may be cheap. Both metrics help traders time entry and exit decisions.
How to use
- 1
Enter historical IV data
Input a series of daily implied volatility values.
- 2
Set current IV
Enter today's implied volatility.
- 3
Calculate metrics
View IV Percentile, IV Rank, and historical statistics.
Frequently Asked Questions
What is IV Percentile?
IV Percentile tells you the percentage of trading days in the past year when IV was lower than it is today. An IV Percentile of 75 means IV is higher than it was on 75% of days. It's a better measure than raw IV because it accounts for seasonal patterns and historical context.
IV Percentile vs IV Rank — which is better?
IV Percentile is generally preferred because it considers the actual distribution of IV values. IV Rank simply places current IV on a linear scale between the 52-week high and low, which can be misleading if IV spent most of the year near one extreme. Professional traders use both as complementary metrics.
How do traders use IV Percentile?
High IV Percentile (>70) suggests selling premium (strangles, iron condors) when options are expensive. Low IV Percentile (<30) suggests buying options when they are cheap. Mean-reverting strategies work best on indices where IV tends to revert to its average.