IV Rank
A normalized reading that places an option's current implied volatility against its own recent range, usually the past year, and expresses the result on a 0-to-100 scale. A reading near 100 means implied volatility is at the top of its own historical band; a reading near 0 means it is at the bottom. The value of the measure is that it answers "expensive relative to what" without comparing across unrelated tickers -- a quiet utility and a volatile biotech have very different absolute volatility levels but the same 0-to-100 scale. It is a context reading, not a signal: a high rank often reflects a genuine reason for elevated uncertainty, and a low rank can persist for a long time.
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Related terms
American Option · Asian Option · Barrier Option · Basket Option · Butterfly Spread · Calendar Spread
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