IVR tells you the relative price level of options in an underlying relative to the past year. Intuitively, IV is the actual level of option prices in an underlying, and IVR is the relative level of option prices that underlying has right now compared to the last year.
Generally, we place short premium trades in underlyings with an IVR over 30 because, on average, the next 45 days result in a net decrease in underlying IV*, pushing option prices lower.
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