Options Trading Glossary

Explanations of key terms in options trading – from the Greeks to strategies and volatility metrics.

Risk & Analysis

Implied Volatility Percentile (IVP)IV Percentile (IVP) measures on how many trading days in the past year implied volatility was lower than today – the key metric for judging whether options premiums are currently elevated or cheap.
Implied Volatility Rank (IVR)Implied Volatility Rank (IVR) measures the current implied volatility (IV) of an asset on a strict linear scale (0 to 100) relative to its absolute highest and lowest IV levels over the past year (252 trading days).