IV rank and IV percentile can both be used to gauge a stock’s current level of implied volatility relative to its historical levels of implied volatility.
Gauging a stock’s implied volatility is not straightforward, especially when comparing the implied volatility of two stocks. For example, one stock’s 30% implied volatility could be high, while another stock’s 70% implied volatility could be low. How can we tell the difference?
The answer is to use IV rank or IV percentile.
In this video, you’ll learn:
1. What IV rank and IV percentile represent.
2. How to calculate IV rank and IV percentile.
3. Why IV percentile serves as a better volatility reversion indicator.
==== RESOURCES ====
Trade with tastyworks (& Get a Free Course):
Our Options Trading Courses:
==== FAVORITE OPTIONS TRADING BOOKS ====
How to Price & Trade Options: https://amzn.to/2FqsPmn
Option Volatility and Pricing: https://amzn.to/2SU6f8K
