(function(){
var COOKIE_NAME = 'menthorq_utm_params';
var LS_KEY = 'menthorq_utm_params';
var UTM_KEYS = ['utm_source','utm_medium','utm_campaign','utm_term','utm_content','utm_id'];
var CLICK_ID_KEYS = ['gclid','fbclid','msclkid','ttclid'];
var COOKIE_DAYS = 30;// Read UTM parameters and click IDs from current URL
var params = new URLSearchParams(window.location.search);
var trackingData = {};
var hasData = false;
var allKeys = UTM_KEYS.concat(CLICK_ID_KEYS);
for (var i = 0; i < allKeys.length; i++) {
var val = params.get(allKeys[i]);
if (val) {
trackingData[allKeys[i]] = val;
hasData = true;
}
}if (hasData) {
// Fresh tracking data found in URL — store it (overwrites previous attribution)
trackingData.captured_at = new Date().toISOString();
setCookie(COOKIE_NAME, JSON.stringify(trackingData), COOKIE_DAYS);
try { localStorage.setItem(LS_KEY, JSON.stringify(trackingData)); } catch(e) {}
return;
}// No tracking params in URL — check if cookie exists
if (getCookie(COOKIE_NAME)) return;// Cookie is missing (expired or first visit) — try to restore from localStorage
try {
var stored = localStorage.getItem(LS_KEY);
if (stored) {
var parsed = JSON.parse(stored);
if (parsed && (parsed.utm_source || parsed.gclid || parsed.fbclid || parsed.msclkid || parsed.ttclid)) {
setCookie(COOKIE_NAME, stored, COOKIE_DAYS);
}
}
} catch(e) {}// Helper: set cookie
function setCookie(name, value, days) {
var expires = new Date(Date.now() + days * 864e5).toUTCString();
var cookie = name + '=' + encodeURIComponent(value) + ';expires=' + expires + ';path=/;SameSite=Lax';
if (location.protocol === 'https:') cookie += ';Secure';
document.cookie = cookie;
}// Helper: get cookie value (returns empty string if not found)
function getCookie(name) {
var match = document.cookie.match(new RegExp('(?:^|; )' + name + '=([^;]*)'));
return match ? decodeURIComponent(match[1]) : '';
}
})();
var breeze_prefetch = {"local_url":"https://menthorq.com","ignore_remote_prefetch":"1","ignore_list":["/wp-json/openid-connect/userinfo","wp-admin","wp-login.php"]};
//# sourceURL=breeze-prefetch-js-extra
Implied Volatility Rank (IVR) tells you where the current implied volatility sits relative to its range over the past 52 weeks. It’s expressed as a percentage:
IVR = (Current IV – IV Low) / (IV High – IV Low) × 100
If IVR is 80, it means implied volatility is near the top of its annual range—a potential indicator for premium selling strategies.
Implied Volatility Percentile (IVP), by contrast, calculates the percentage of days in the past 52 weeks where the implied volatility was lower than today:
IVP = (Number of days IV < Current IV) / 252 × 100
So if IVP is 80, the current IV is higher than 80% of the last 252 trading days.
Why We Use IV Rank as Default
At platforms like Tastytrade, IVR is often the default metric. The reason is clarity. IVR directly shows how high or low volatility is in the context of its range. This makes it especially actionable for traders who use volatility levels to decide when to sell or buy options.
While IVP is useful, it sometimes produces misleading signals—especially if implied volatility has been abnormally low or high for a sustained period. IVP could indicate a high percentile even when IV is mid-range in absolute terms.
How Do IV Rank and IV Percentile Compare in Practice?
To assess how both metrics perform, researchers ran a 10-year backtest on SPY options. They sold 16-delta strangles with 45 days to expiration, managed at 21 DTE, and categorized results by whether IVR or IVP was above or below 30%. They evaluated key metrics:
Win rate
Average premium relative to buying power (BP)
Average P&L relative to BP
Return on investment (ROI)
Results Overview:
IV Rank vs. Percentile 8
The chart below visualizes the results:
Win Rate: Both metrics yielded similar outcomes, with slightly higher success rates when IVR or IVP exceeded 30%.
Premium/BP: Higher implied volatility environments allowed traders to collect more premium relative to the capital committed, with IVR slightly outperforming.
P&L/BP: The extra premium helped offset market risks, leading to stronger average returns when volatility was elevated.
ROI: Return on investment increased significantly—up to 60%—when traders operated in high IVR or IVP environments.
The takeaway? While both metrics are useful, IVR offers a slight performance edge and a more intuitive interpretation for real-time decision-making.
You can use our Cross Asset IV rank to pick the assets that you want to trade.
IV Rank vs. Percentile 9
Real-World Example: Current Market Confusion
Let’s say SPY currently shows:
IVR = 19
IVP = 56
This might puzzle new traders. IVR says volatility is low, while IVP says it’s above average. Which is correct?
Both are, technically. But the low IVR tells you the current IV is near the bottom of its one-year range—indicating limited premium—and perhaps signaling caution for option sellers. IVP’s 56% tells you volatility is still higher than it was on more than half the past year’s trading days, but doesn’t clarify how close we are to peak or trough volatility. This is why many traders prefer IVR—it provides context, not just frequency.
Strategic Implications
The difference in metrics can influence trade selection:
High IVR (>30) → Favor premium-selling strategies (e.g., strangles, iron condors)
Low IVR (<30) → Be cautious with premium-selling; consider debit spreads or avoid trades
High IVP → May suggest limited room for further IV expansion
Low IVP → More potential for IV to rise—perhaps ideal for IV buyers
Both metrics tell you about volatility, but IVR gives you a better sense of where volatility is, not just how often it’s been lower.
Mean Reversion: The Big Picture
Why does any of this matter?
Because implied volatility tends to mean-revert. That is, if it’s high today, there’s a good chance it will come down. Selling option premium during periods of high IV can offer traders an edge—especially if they can hold through the noise.
Historical data shows that 85% of the time, implied volatility overstates realized volatility. This edge is where options sellers make their living.
By identifying high IV environments with IVR or IVP, traders can sell options with fatter premiums, build cushions into their trades, and improve their return on capital.
Whether you use IVR or IVP, the goal is the same: identify when the market is pricing in too much fear or excitement. IVR is often more intuitive and better for real-time decisions, which is why many platforms prefer it. IVP is still valid—just more nuanced.
The important thing is consistency. Pick one metric and apply it systematically in your trading. Use it to frame your edge, evaluate risk, and decide when to be aggressive or conservative. In the end, it’s not about choosing the perfect tool—it’s about using a good tool well.
