Key Concepts

IV Rank

IV rank is our favorite volatility measure at tastytrade. IV rank simply tells us whether implied volatility is high or low in a specific underlying based on the past year of IV data. For example, if XYZ has had an IV between 30 and 60 over the past year and IV is currently at 45, XYZ would have an IV rank of 50%. Since all underlyings have unique IV ranges, stating an arbitrary IV number does not help us decide how we should proceed with a strategy.

IV rank is important to us so we’ve created a tool for you to use on dough to locate underlyings with extreme IV ranks. On the grid page you can sort notable stocks by IV rank and even filter for specific IV ranks.

IV Rank Videos