Implied Volatility vs IV Rank

The annualized standard deviation of price returns implied by the current market price of an option, derived by solving the Black-Scholes model backwards from observed market price; forward-looking measure of expected future volatility; distinct from historical volatility which measures past realized movement.

A measure of current implied volatility relative to its 52-week high and low; calculated as (current IV − 52-week low) / (52-week high − 52-week low) × 100; IV Rank above 50 indicates elevated premium; IV Rank below 30 indicates compressed premium, favoring different options strategies.