The Lab
May 26, 2026

IV Rank Tool

Is Your Ticker's Volatility Rich, or Cheap?

This tool helps traders put current IV Rank readings into perspective by showing how price has historically responded to similar levels of implied volatility relative to a stock's own history, offering context beyond raw IV numbers alone.

Implied volatility is often difficult to interpret in isolation. A reading of 35% may be considered high for a stable large-cap stock, yet relatively low for a more volatile name. Without historical context, it is hard to know whether current option prices are expensive or cheap compared to what the stock has experienced in the past.

IV Rank addresses this by placing today's implied volatility within the stock's own one-year range. A high IV Rank indicates that current implied volatility is toward the upper end of its recent history, while a low IV Rank suggests it is toward the lower end. This context matters because rich volatility and cheap volatility often create very different trading environments. Understanding what usually happens next requires perspective from how price has historically behaved when IV Rank was at similar levels.

What the Tool Shows You

Projection

45-Day Projected Price Cone

Projects a potential price range over the next 45 days by applying historical forward returns from past similar setups.

Probability

Probability Graph

Shows how often prices rose or fell after similar setups in the past.

Scan

Auto-Detection

The tool automatically scans the market and highlights stocks with the strongest setups for the day ahead.

Log

Past Similar Setups

A full log of every past day when conditions were similar.

How Traders are using the IV Rank Tool

1

Morning Scan

Start the day by checking whether the tool is highlighting any unusual activity in your favorite stocks. This helps you quickly identify which names may be setting up for a potential move.

2

Review the Price Cone

See how price has historically behaved after similar setups. This gives you a realistic view of what typically happens next instead of relying on guesswork.

3

Size the move with the bar graph

Switch to Bar Graph view and set your target price level. The bars show how often similar setups reached that distance by upcoming expirations. Toggle between "By Touch" and "By Close" depending on your strategy.

4

Review the chart and table log for context

Review the historical matches before taking a position. Pay attention to how many comparable setups exist and whether they occurred during similar market conditions. This helps you determine how much weight to give the current signal.

Check where your favorite stock's IV rank sits today

Open IV Rank Tool

Get in Touch

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interested in learning more about our tools.