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Glossary
ABCDEGIOPRSTV
A
  • Assignment
  • At-the-money (ATM)
B
  • Break-even
C
  • Covered call
D
  • Days to expiry (DTE)
  • Delta (Δ)
E
  • Exercise
  • Extrinsic value
G
  • Gamma (Γ)
I
  • Implied volatility (IV)
  • In-the-money (ITM)
  • Intrinsic value
  • IV rank
O
  • Open interest
  • Out-of-the-money (OTM)
P
  • Premium
R
  • Rho (ρ)
S
  • Strike price
T
  • Theta (Θ)
V
  • Vega (ν)
  • Volume
pricing

IV rank

Where today's IV sits within the stock's one-year IV range.

IV rank normalises implied volatility across stocks. IV rank of 80 means today's IV is higher than it has been 80% of the past year. Selling strategies prefer high IV rank (rich premium); buying prefers low.

Related

Implied volatility (IV)

The market's forward-looking estimate of how much the stock will move.

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