Video Library

Implied Volatility: An Overview

Greeks and Volatility

Implied 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

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