The expected future volatility of a security, derived from current option prices.
High IV = expensive options = market expects big moves. Low IV = cheap options = expectations of calm. IV percentile (vs. its own history) is more useful than absolute IV. IV crush after earnings is one of the most reliable patterns in options markets.
The expected future volatility of a security, derived from current option prices. High IV = expensive options = market expects big moves. Low IV = cheap options = expectations of calm. IV percentile (vs. its own history) is more useful than absolute IV. IV crush after earnings is one of the most reliable patterns in options markets.
In derivatives, Implied Volatility (IV) is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
High IV = expensive options = market expects big moves. Low IV = cheap options = expectations of calm.
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