What is IV Rank?
What Is IV Rank in Options?
Updated 2026-07-21
Quick answer
IV Rank places today’s implied volatility between its recent high and low so “expensive” or “cheap” is relative to that underlying’s history.
Also called: IV Rank, IVR, IV Percentile.
Visual explainer
IV Rank places today’s implied volatility between its historical low and high so “expensive” or “cheap” is relative.
Full definition
IV Rank is not a forecast. High IV Rank means options are expensive versus recent history, which can favor premium sellers who accept event risk. Low IV Rank can favor long options when a catalyst is expected. Pair IV context with flow (is expensive premium still being bought?) and chain structure.
How it shows up in TradingFlow
- Learn: Greeks & GEX
Covers IV, IV Rank, and IV Percentile definitions used across the product language.
- Option Trades
See whether expensive or cheap premium is being bought aggressively in live flow.
How to read it
- Use IV Rank for premium environment, not direction.
- If IV Rank is high and flow is still aggressively buying OTM calls, that is a different story than quiet high-IV grind.
Who this is for
Options traders who pick strategies based on whether premium is rich or cheap versus history.
Common mistakes
- Confusing IV Rank with IV Percentile.
- Selling high IV Rank into binary events without risk limits.
Frequently asked questions
- IV Rank vs IV Percentile?
- IV Rank uses the range between high and low. IV Percentile asks what fraction of past days had lower IV. Both are historical context tools.
Related terms
- Gamma exposure (GEX)GEX estimates aggregate dealer gamma from listed options. Positive gamma tends to dampen moves; negative gamma tends to amplify them. Option gamma is the building block; a gamma squeeze is a feedback loop when short-gamma hedges chase price higher.
- Option flowOption flow is the time-and-sales stream of options prints: contract, size, premium, and inferred aggressor side.
- Unusual options activity (UOA)UOA flags contracts or underlyings trading far above recent norms in volume, size, or premium. It is an attention screen, not a directional signal.
- IV crushIV crush is a sharp drop in implied volatility after uncertainty resolves, often after earnings. Premium can fall even when the stock moves your way.
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