Learn about IV Percentiles and how they relate to the markets and options trading.
IV Percentile (Implied Volatility Percentile) is a metric that indicates the percentage of days in a specified historical period (typically one year) where the implied volatility (IV) of an option was lower than the current IV. For example, an IV Percentile of 70% means that the current IV is higher than it was on 70% of the days in the past year. Unlike IV Rank, which compares the current IV to the absolute range of historical IV, IV Percentile focuses on the distribution of historical IV values.