IV Rank

How to Use — WTP_IVRank

Is the option premium rich vs its own history? Educational, not advice.

What it is (one line)

IV Rank / IV Percentile — where today's implied volatility sits inside its own 1-year range. High reading = options are expensive vs their own history = the favorable side for selling premium (cash-secured puts, covered calls).

Who it's for & best timeframe

Best overall: the daily chart. length counts chart bars, so 252 daily bars ≈ one trading year of IV history. On intraday it still plots but the lookback is in intraday bars (set length ~1638 for a 1-year 1h read).

What you see (lower panel)

• Cyan line — IV Rank (or IV Percentile if you switch metric), 0–100.
• Green dashed at high_threshold (50), red dashed at low_threshold (25).
• Labels: the reading + a call — -> SELL premium (≥50), -> cheap IV (≤25), or -> neutral; plus Current IV %.

How to use it

1. Pull it up on the daily before selling any put/call.
2. IV Rank ≥ 50 → premium is rich; selling is favorable (pair with a strike at a WTP_VolumeProfile shelf).
3. IV Rank ≤ 25 → premium is cheap; either skip or lean to buying options / debit structures.
4. IV Rank vs IV Percentile: Rank = position in the high/low range; Percentile = % of days IV was lower. Use Percentile when a single spike distorts the range.

Settings

• length (252) — lookback in bars. 252 = ~1 year on daily.
• metric — IV Rank (default) or IV Percentile.
• high_threshold (50) / low_threshold (25) — the rich / cheap lines.

Common mistakes

• Running it on an intraday chart and reading the number as a 1-year rank (it isn't — fix length).
• Selling premium at low IV Rank because the dollar credit "looks fine."

Video script outline

1. Hook: "Before you sell a put, ask one thing — is the premium actually rich?"
2. Show IV Rank on the daily; explain 0–100 vs its own year.
3. ≥50 = sell zone, ≤25 = cheap.
4. Combine with a support shelf for strike selection.
5. Recap + import link.