IV Rank (IVR) Filter: Sell Premium When Volatility Is Historically High
Filter by IV Rank on the underlying stock — where today's stock IV sits in its 52-week range. High IVR means richer premium vs that ticker's own history.
What IV Rank (IVR) is
IV Rank answers a different question than raw implied volatility:
- Contract IV (the IV filter) = how expensive this option looks right now.
- IVR on the stock = how expensive the underlying's current stock IV is vs its own 52-week low and high.
Formula (0–100 scale):
(Current stock IV − 52W low IV) ÷ (52W high IV − 52W low IV) × 100
- IVR near 0 — stock IV is near its yearly lows (cheap vol environment for sellers).
- IVR 50+ — IV is in the upper half of its yearly range (premium tends to be richer).
- IVR near 100 — stock IV is at or near its 52-week high (maximum relative richness).
For wheel traders, high IVR is often the better timing signal than a single high IV print, because it is normalized per ticker. A 40% IV name at IVR 80 can be a better sell than a 80% IV name at IVR 20.
Where to find it
On both screeners:
- Open the Put or Call screener.
- In Greeks & Metrics, use IV Rank (IVR) (0–100 slider).
- Enable the IV Rank column (shown by default for new layouts) to scan results.
The filter applies to the underlying stock; every contract on that symbol shares the same IVR in the table.
Recommended IVR ranges
| Posture | IVR range | Notes |
|---|---|---|
| Any vol | 0 – 100 | Default — no IVR filter |
| Elevated vs history | 50 – 100 | Classic "sell high IV rank" wheel scan |
| Very rich | 70 – 100 | Aggressive premium; watch earnings/binary risk |
| Low-rank avoidance | 25 – 100 | Skip names still in a vol dip |
Pair with Exclude Earnings so a high IVR is not just pre-earnings fear premium.
A worked example — high IVR puts
- Open the Put screener.
- Set IV Rank to 60 – 100.
- Set Delta to −0.30 to −0.15 and Volume ≥ 100.
- Turn on Exclude contracts near earnings.
- Sort by Premium Yield % or Ann %.
You get names where vol is historically elevated and the contract still fits your risk band.
IVR vs contract IV — use both
| Tool | Measures | Best for |
|---|---|---|
| IV filter | Per-contract implied vol % | Comparing premium richness across strikes |
| IVR filter | Stock IV vs 52W range | Timing entries on a single underlying |
| IV Rank Calculator | Manual IVR from IV + 52W high/low | One-off checks off-platform |
A stock can show high contract IV but low IVR (IV elevated vs yesterday but still cheap vs its year). The opposite also happens after a vol crush — low IV prints with IVR still high.
Common mistakes
1. Treating IVR like IV level. IVR 80 does not mean "80% implied vol." It means "near the top of this stock's yearly IV range."
2. Ignoring the 52-week window. IVR uses rolling 52-week stock IV extremes. A recent IPO or sparse history can make IVR less meaningful — cross-check with fundamentals.
3. Skipping liquidity and earnings. High IVR + wide spreads + earnings next week is still a trap. Stack Volume, Bid-Ask Spread, and earnings exclusion.
Where to go next
- Read Implied Volatility filter for contract-level IV.
- Try the High IV preset and add IVR 50+ for a relative-vol tilt.
- Use RSI filter to time pullbacks when IVR is already elevated.
Frequently Asked Questions
What IVR is considered high for selling options?
Many wheel traders use IVR at or above 50 as 'elevated' and 70+ as 'very high' relative to the past year. Combine with contract IV and earnings filters before trading.
Why is IVR different from the IV% column?
The IV% column reflects the option contract's implied volatility. IVR is a 0–100 rank for the underlying stock's IV vs its 52-week low and high — better for comparing vol richness on one ticker over time.