IV% Rank Explained: Determine if an Option Price is Cheap or Expensive

Share on Facebook
Share on Google+
Share on LinkedIn

In this video, you will learn how to determine if an option is cheap or expensive.  I will show you how to use the IV% Rank (Implied Volatility Percentile Rank) to figure out if an option is relatively overpriced or underpriced.  I will use a real life example on an AAPL out-of-the-money call so that you can see how it works and do it yourself.


Stock and option trading involves risk may not be suitable for all investors. This post is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither MarketChameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades.

Note: selling options can result in losses of greater than 100%. Average returns from selling options is calculated based on net change in value against the initial theoretical option value. Prior to buying or selling an option, you should read the Options Clearing Corporation's Characteristics and Risks of Options.
The information is provided for informational purposes only and should not be construed as investment advice. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.