Should I reduce my options position size when this stock's IV rank is elevated?

How this is calculated

• IV rank shows where a stock's current implied volatility sits relative to its own high and low over roughly the past year, on a 0 to 100 scale. It is different from the raw IV level and different from a market-wide measure like VIX.
• When IV rank is elevated and you are buying premium, you are paying a richer price for that option, and a drop in implied volatility after an event, sometimes called an IV crush, can work against you even if the stock moves the direction you expected.
• For that reason, this tool suggests reducing size for premium-buying strategies as IV rank rises, using flat tiers rather than a precise formula.
• For premium-selling strategies, elevated IV rank means richer premium collected, which many traders view as a more attractive environment, though it also means the stock has the potential for a larger move. This is genuinely debated among traders, so this tool does not suggest a size change for sellers, only a caution note at high IV rank.
• These are general heuristic tiers, not a formula tied to any specific pricing model, and they do not predict whether implied volatility will rise or fall further from here.