IV Rank vs Premium

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.

The upfront price paid by the option buyer to the option seller for the rights conveyed by the contract; the premium is the buyer's maximum possible loss if the option expires worthless; composed of intrinsic value and extrinsic (time) value.