IV Percentile provides insight as to how the current IV for a given term compares to a 1-year history of previous IVs for the same term.
Consider an example 5-day history where the 10d IV has had the following ordered values: 20, 25, 25, 40, 50):
The following represents IV Percentiles for hypothetical “current” 10d IVs:
10d IV | Number Of Days Below | IV Percentile |
---|---|---|
20 | 0/5 | 0% |
26 | 3/5 | 60% |
32 | 3/5 | 60% |
38 | 3/5 | 60% |
44 | 4/5 | 80% |
50 | 4/5 | 80% |