A theoretical value designed to represent the volatility of the security underlying an option as determined by the price of the option. The factors that affect implied volatility are the exercise price, the riskless rate of return, maturity date and the price of the option. Implied volatility appears in several option pricing models, including the Black-Scholes Option Pricing Model.
Related information about implied volatility:
- Implied volatility - Wikipedia, the free encyclopedia
In financial mathematics, the implied volatility of an option contract is that value of the volatility of the underlying instrument which, when input in an option pricing ...
- Implied Volatility (IV) Definition | Investopedia
The estimated volatility of a security's price. In general, implied volatility increases when the market is bearish and decreases when the market is bullish. This is ...
- Implied Volatility: Buy Low And Sell High
Nov 20, 2012 ... This value is an essential ingredient in the option pricing recipe.
- Options Volatility | Implied Volatility in Options - The Options Playbook
There are 2 types of volatility in options - Implied volatility, a forward-look at price fluctuation, and historical volatility, a measure of past price changes.
- Implied Volatility by OptionTradingpedia.com
What implied volatility in options trading is, how implied volatility is measured, how implied volatility affects options pricing and how to profit using implied ...
- Implied volatility
This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition. Implied volatility...
- Implied volatility - YouTube
Feb 6, 2008 ... Using the market price for an option on Google's stock, I use Excel's GOAL SEEK function to estimate implied volatility. Implied volatility is a ...
- Stock Options Analysis and Trading Tools on I Volatility.com
NEW service IVX Monitor provides current readings of intraday implied volatility for US equity and futures markets. It is available in free and customized versions.