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IV rank and IV percentile can both be used to gauge a stock’s current level of implied volatility relative to its historical levels of implied volatility.
Gauging a stock’s implied volatility is not straightforward, especially when comparing the implied volatility of two stocks. For example, one stock’s 30% implied volatility could be high, while another stock’s 70% implied volatility could be low. How can we tell the difference?
The answer is to use IV rank or IV percentile.
In this video, you’ll learn:
1. What IV rank and IV percentile represent.
2. How to calculate IV rank and IV percentile.
3. Why IV percentile serves as a better volatility reversion indicator.
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