HOW IS IV RANK CALCULATED
The formula for IV rank is simple. It is
100 x (the current IV level - the 52 week IV low) / (the 52 week IV high - 52 week IV low) = IV Rank No matter what broker you use, make sure you can find the IV Rank before you make the trade.
3. Finding The Best Option Strategy This final step in the strategy process is simply to target the best options strategy that combines which direction you think the stock is headed in Step #1 and the implied volatility rank you found in Step #2. In Step #3 you will start choosing the best options strategy for whatever market setup you're looking at. To get the job done, you will have a series of options strategies after applying the direction and the IV rank. There maybe many choices, but there always be one strategy that will work just a little bit better than the others. Just so we're clear on how to work through the steps
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