Implied Volatility (IV)
Definition
The market’s forecast of a likely movement in the underlying asset’s price, derived from current option prices.
Example
IV of 30% implies the market expects roughly 30% annualized volatility. IV Rank Category: Options Definition: A percentile ranking of current implied volatility compared to its past 1-year range (0–100%). Helps traders identify hi
Frequently Asked Question
What is Implied Volatility (IV) in trading?
The market’s forecast of a likely movement in the underlying asset’s price, derived from current option prices.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.