IV Rank and IV Percentile

IV Rank and IV Percentile are two statistics that measure how the current level of implied volatility (IV) compares to the historical range of values for IV. IV Rank calculates the current IV against the historical range of IV over the last year, while IV Percentile shows the percentage of time the IV was lower than the current level over the last year. Both measures provide context to determine if options are cheap or expensive compared to typical values. The calculations for IV Rank and IV Percentile are relatively simple and can help in understanding volatility in options trading.