IV Percentile(IVP)
IV Percentile is the percentage of trading days over the past year on which implied volatility was lower than it is today.
IVP = (days with IV below today / total days) × 100What IV Percentile Means
IV Percentile (IVP) answers a simple question: out of the last 252 trading days, on how many was implied volatility lower than where it is right now? An IVP of 80 means IV has been lower than today's level 80% of the time over the past year — so current IV is historically high. An IVP of 10 means IV is near the bottom of its yearly range.
It converts a raw IV number, which is hard to judge in isolation, into a context-aware reading between 0 and 100.
IV Percentile vs IV Rank
IV Percentile counts how many days were below today, so it respects the full distribution of IV. IV Rank instead looks only at where today sits between the year's high and low. IVP is more robust when IV spent most of the year low but spiked briefly — IVR can be skewed by a single extreme, while IVP reflects the typical day.
IV Percentile in the Indian Market
A high Nifty or BankNifty IVP flags a good moment to sell premium — short straddles, strangles and iron condors all benefit from selling when IV is historically elevated and likely to mean-revert. A low IVP warns sellers that there is little volatility cushion left. Quintal Mind computes live IVP from India VIX history so you can time premium entries against the past year of data.
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