What is IV Rank and how to use it?

what is iv rank and how to use it, iv rank, what is iv rank

One of the most important data for an options trader is the implied volatility. The higher the implied volatility the higher would be the price of an option. But using the implied volatility as a naked figure has a weak spot. When you take a random stock and take a look at its implied volatility, would you be able to determine whether it’s high or low, especially compared with the volatility of the past? Actually, you wouldn’t. Maybe you would be indeed able to do this when you observe a stock for a longer period of time. But this would apply just to one stock and not to every stock or commodity. And here comes a solution which is called the Implied Volatility Rank or just the IV Rank. (more…)