Implied Volatility Rank (1 Year)

Returns the implied volatility rank based on a 1-year (52-week) lookback period. IV Rank shows where the current IV stands relative to its high and low over the past year.

Calculation

IV Rank = (Current IV - 52w Low IV) / (52w High IV - 52w Low IV) * 100

Interpretation

IV Rank Meaning Strategy Implication
0-25 Historically low IV Consider buying options
25-50 Below historical average Neutral to buying
50-75 Above historical average Consider selling options
75-100 Historically high IV Favor selling strategies

Parameters

Parameter Type Required Description
Symbol string Yes Stock ticker symbol
StartDate date No Historical date (defaults to current)

1-Year vs 1-Month IV Rank

Timeframe Best For
1-Year Long-term perspective, major events
1-Month Short-term trading, recent volatility

Notes

  • The 1-year lookback provides better context for major market events
  • More stable than 1-month (less reactive to short-term spikes)

Examples

=ImpliedVolatilityRank1y("AAPL")
Current 1y IV rank for Apple
=ImpliedVolatilityRank1y("TSLA")
Tesla 1y IV rank
=ImpliedVolatilityRank1y("SPY")
SPY 1y IV rank
=ImpliedVolatilityRank1y("AAPL",DATE(2024,1,15))
Historical IV rank
=ImpliedVolatilityRank1y(A1)
Symbol from cell

When to Use

  • Long-term options strategy decisions
  • Screening for historically high/low IV stocks
  • Comparing current IV to annual range
  • Major options positions (LEAPs, etc.)

When NOT to Use

Scenario Use Instead
Need short-term perspective ImpliedVolatilityRank1m()
Need IV percentile ImpliedVolatilityPct1y()
Need raw IV value ImpliedVolatility()
Need specific period IV ImpliedVolatility30d(), etc.

Common Issues & FAQ

Q: Why is 1-year IV rank lower than 1-month? A: The 1-year rank uses the full year's high and low, which may include extreme values (like market crashes). This makes the current IV look lower relative to historical extremes.

Q: Which IV Rank should I use? A:

  • 1-Year: Better for long-term perspective, accounts for major events
  • 1-Month: Better for short-term trading, more reactive

Q: What IV Rank should I look for when selling options? A: Generally, an IV Rank above 50 (ideally above 75) suggests IV is elevated and selling strategies may be favorable.

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MarketXLS Excel Add-in Tutorial - How to Use Implied Volatility Rank (1 Year) and Other Financial Formulas
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