What Does It Mean When the Implied Volatility Rank (IVR) Is High?

Implied Volatility Rank (IVR) measures the current implied volatility (IV) of an asset relative to its IV range over a specific historical period (e.g. the last year). A high IVR (e.g.

80%) means the current IV is near the high end of its historical range. This indicates that the market is currently pricing in a high expectation of future price movement compared to its recent past.

Traders often interpret a high IVR as a signal that options are relatively expensive, favoring options selling strategies.