The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “How to determine IV rank?” IV rank is a favor metric of options traders, in particular, option sellers and over the last couple of years, it’s gained a lot of popularity and you can actually see IV rank in many different platforms. We have an IV rank calculated using our own software here at Option Alpha, but inside of Thinkorswim and Tastyworks and some other brokers as well, you have the ability to determine IV rank or IV percentile. Now, on today's show, we’re going to be talking about IV rank because it's the very quick and dirty way to look at and compare different securities on a normalized implied volatility basis. And so, what I mean by this is that when we typically see implied volatility, what we are looking at when we see implied volatility is the raw or real implied volatility of the security, but that implied volatility is not normalized when we try to compare on