Glossary term
IV Rank
Where current implied volatility sits within its trailing 52-week range, on a 0-100 scale; the timing signal for premium selling.
IV Rank measures where current implied volatility sits within its trailing 52-week range, expressed on a 0-100 scale. An IV Rank of 80 means current IV is near the top of the past year's range, signaling rich premium. Closelook sells premium when IV Rank is in the upper quartile (above 75), because elevated implied volatility tends to mean-revert, favoring the seller. See Greeks 101 and Vega.