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1. What are IV, HV, IV Rank, and IV Percentile of the underlying asset IV (Implied Volatility) The Total IV of the option chain is obtained by comprehensively weighting the implied volatility of some options on the option chain. It reflects the overall volatility of the option chain in the next 30 days, and this data also has a reference value for the underlying stock. HV (Historical Volatility) It reflects the actual volatility of the underlying asset in the past 30 days, which is used to measure the degree of deviation of the underlying asset from its average price. IV Rank (Implied Volatility Rank) IV Rank is a relative indicator. Based on the highest and lowest IV values of the underlying asset in the past year, the current IV is calculated. Calculation formula: IV Rank = (Current IV - Lowest IV in 1 year) / (Highest IV in 1 year - Lowest IV in 1 year) * 100 The IV Rank fluctuates between 0 and 100; when IV Rank is 0, it indicates that the current IV is in the lower range in the past 1 year; when IV Rank is 100, it indicates that the current IV is in the higher range in the past 1 year. IV Percentile (Implied Volatility Percentile) of the underlying asset IV Percentile is also a relative indicator, which calculates the percentage of days in the past year when the implied volatility is lower than the current IV. Calculation formula: IV Percentile = Number of days lower than current IV in 1 year / Trading days The IV Percentile fluctuates between 0% and 100%; when IV Percentile is 0%, it indicates that 0% of trading days in the past 1 year have an IV lower than the current IV; when IV Percentile is 100%, it indicates that 100% of trading days in the past 1 year have an IV lower than the current IV. 2. How to use it When the implied volatility IV is less than the historical volatility HV, it usually indicates that the market expects the volatility of the underlying asset in the future to be less than the historical volatility; when the implied volatility IV is greater than the historical volatility HV, it usually indicates that the market expects the volatility of the underlying asset in the future to be greater than the historical volatility. Here are several common scenarios: Scenario 1: When a company like XYZ is about to release its financial report, if its Total IV rises significantly and reaches a historically high level. This indicates to some extent that the market expects stock prices to fluctuate significantly in the next 30 days, which also usually means that current option prices are relatively expensive. In this case, as investors, we need to carefully consider whether to be an option buyer. In addition, during the earnings season, when deploying options strategies, we must also be aware of the volatility trap (IV Crush). IV Crush refers to a sudden drop in the implied volatility of options after a certain event, often occurring after the release of financial reports and Federal Reserve interest rate meetings. IV is the market's expectation of future stock price fluctuations. Therefore, before an uncertainty occurs, expectations are usually very high, with some betting on rises and others on falls, creating quite a buzz. However, when everything settles down and there are fewer uncertainties, IV will decrease, resulting in a decrease in option prices. Therefore, before opening a position in an option, we must determine whether the implied volatility (IV) at that time has risen to a high level. Scenario 2: XYZ stock's Total IV is much higher than that of another stock. Does this mean that XYZ's options are more expensive? Not necessarily. As everyone knows, the stock price movements of different stocks often have their own volatility patterns. Some stocks tend to fluctuate greatly, while others fluctuate relatively low. Therefore, the price fluctuations of their options will also follow different patterns. Therefore, Total IV of different stocks cannot be compared horizontally. However, we can use IV Rank and IV Percentile to determine which stock is more suitable for trading. Scenario 3: Based on these comprehensive indicators, we can make judgments about the direction of options trading. For example, when IV Rank and IV Percentile are both high, it may mean that current option prices are relatively expensive, and options seller strategies such as covered call options and cash-secured options can be considered. For example, when IV Rank and IV Percentile are both low, it may mean that current option prices are relatively cheap, and options buyer strategies such as buying call options and buying put options can be considered. 3、Feature Navigation Stock Quotes Page--Options Tab-- Bottom Navigation Statistics