Implied volatility

Sun, 21 Jun 2026 00:00:00 +0000

Implied volatility, abbreviated IV, is the market’s forecast of how much an underlying will move in future, backed out of an option ’s traded premium using an option-pricing model, and expressed as an annualised percentage. It is called implied because it is not measured from price history but inferred from what traders are paying for the option today: given the premium, strike, time to expiry, spot and interest rate, IV is the volatility figure that makes the model’s price equal the market price. It is the single most important driver of an option’s time value after moneyness and time.

IV Percentile on WebNotes

Implied volatility