Volatility aur IV

Overview

Implied volatility is the market’s expectation of how much the underlying will move, baked into the option price. IV Rank shows whether current IV is high or low versus its own past, and IV Crush is the sharp drop in IV right after an event such as results.

Key takeaways

• Higher implied volatility means richer premiums for both calls and puts.
• IV Rank compares today’s IV to its own one-year range, not to other stocks.
• IV usually rises before a known event and falls sharply after it.
• Buying options into high IV exposes you to a post-event premium drop.

For education only. Not investment advice.