IV rank
Where current implied volatility sits within its own past year’s range, from 0 (at the low) to 100 (at the high). It answers “is IV high for this underlying?” rather than “is IV high in absolute terms?”
A biotech at 60% IV may be cheap for it while an index at 18% is rich for it — IV rank normalizes across names so premium-selling screens compare like with like.
The measure has known blind spots: after a single extreme spike, everything looks “low rank” for a year, and rank says nothing about whether volatility is rich relative to what will be realized. Use it as context, not a signal.
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