Implied Volatility: An Overview
Greeks and VolatilityImplied volatility (IV) plays a crucial role in options pricing—and understanding how it works can give traders a better grasp of market expectations and valuation differences.
In this video, we explore:
- What implied volatility is and how it differs from historical volatility
- Why IV is considered subjective and how it affects fair value pricing
- An example showing how changes in IV can impact option value