IV Rank Calculator

IV Rank (Implied Volatility Rank) measures where current implied volatility stands relative to its 52-week high and low. It's expressed as a percentage from 0-100. High IV Rank (above 75) means options premiums are expensive historically - ideal for sellers. Low IV Rank (below 25) means premiums are cheap - ideal for buyers. Professional options traders use IV Rank to determine when to sell or buy premium, making it one of the most critical metrics for options strategy selection.

IV Rank uses only the high and low IV values over 52 weeks: [(Current IV - Low) / (High - Low)] × 100. IV Percentile uses all daily IV values and calculates what percentage of days had IV below the current level. Both measure relative IV, but IV Percentile is more accurate as it considers all data points. However, IV Rank is simpler and faster to calculate. Use either for similar trading decisions - both indicate if IV is historically high or low.

For Nifty and Bank Nifty, check India VIX on NSE website (indiaix.com) for current IV. Track daily VIX values for 52 weeks to find high and low. Alternatively, use options analytics platforms like Sensibull, Opstra, or TradingView which show IV Rank directly. For quick reference: India VIX below 12 = low IV, 12-18 = normal, 18-25 = elevated, above 25 = high. During major events (budget, elections), IV spikes above 30. Use our calculator to compute exact IV Rank from these values.

Ideal IV Rank for selling options: Above 75 is excellent (high premiums), 60-75 is good, 50-60 is acceptable. Below 50, avoid aggressive premium selling as there's limited premium to capture and risk of IV expansion. In Indian markets, IV typically spikes during: 1) Budget day (Feb), 2) Elections, 3) Global market crashes, 4) Major RBI policy changes, 5) Geo-political tensions. Wait for IV Rank above 70 before deploying capital-intensive strategies like short straddles or iron condors.

Buy options when IV Rank is below 30 - premiums are cheap. Best scenarios: 1) IV Rank under 20 with upcoming event (earnings, policy announcement) - buy long straddles, 2) IV Rank 20-30 with strong directional view - buy ATM calls/puts, 3) Extremely low IV (under 15) - accumulate long positions for inevitable IV expansion. Avoid buying options when IV Rank is above 60 unless you have very strong conviction, as high premium erodes quickly when IV normalizes. Time your entries during calm periods before expected volatility events.

Check IV Rank before entering every options trade - it should be part of your pre-trade checklist. For existing positions, monitor daily if you're short premium (selling options) as sudden IV spikes can cause losses. If you're long premium (buying options), check weekly to see if IV has expanded enough to exit profitably. Set alerts: 1) When IV Rank crosses above 75 (sell opportunities), 2) When IV Rank falls below 25 (buy opportunities), 3) Unusual IV spikes (10+ points in a day). Professional traders have IV Rank dashboards for all major indices and stocks they trade.

No, IV Rank does NOT predict market direction - it only tells you if volatility is high or low historically. However, extremely high IV Rank (above 90) often coincides with market bottoms (maximum fear) and can be a contrarian indicator. Extremely low IV Rank (below 10) suggests complacency and precedes market moves. Use IV Rank for strategy selection, not direction prediction. High IV = sell premium strategies (straddle, condor). Low IV = buy premium (long options). Combine IV Rank with technical analysis, market structure, and your directional view for complete trading decisions.