Implied Volatility Rank compares current implied volatility to its own recent range — telling you whether premiums are priced rich or cheap.
What Is IV Rank?
IV Rank measures where current implied volatility sits between its 52-week low and high, scaled 0 to 100. A rank near 100 means volatility is at the top of its range; near 0 means it is at the bottom.
High IV Rank = Better Premiums
When IV Rank is high, options are expensive — sellers collect more premium for the same strike. This is the ideal environment to sell puts and covered calls, because you are paid more for the same risk.
Low IV Rank = Patience
When IV Rank is low, premiums are thin. Selling here means accepting less income for the same risk. WSP waits for volatility to expand before deploying capital aggressively.
Key Takeaways
- IV Rank shows whether premiums are rich or cheap right now.
- Sell premium when IV Rank is elevated.
- Be patient when IV Rank is low — premiums are thin.