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Futures & options
Also called: IV
Implied volatility (IV) is the yearly volatility that an option's market price implies, worked backwards from an option-pricing model. High IV means options are expensive relative to the underlying; it is a price, not a forecast.
If an at-the-money Nifty option prices in an IV of 13%, the market is charging for roughly a 13% one-standard-deviation move over a year — about 0.8% a day (13 ÷ √252).
Implied volatility (IV) is the yearly volatility that an option's market price implies, worked backwards from an option-pricing model. High IV means options are expensive relative to the underlying; it is a price, not a forecast.
If an at-the-money Nifty option prices in an IV of 13%, the market is charging for roughly a 13% one-standard-deviation move over a year — about 0.8% a day (13 ÷ √252).
No. Implied volatility describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.