Implied or “expected” volatility is one of the determinants of an options price. Computed using an options pricing model, it is the level of volatility reflected in the market value of an options contract. Each options contract has a unique level of implied volatility, expressed as a percentage, that is fluid and always changing. When high, IV indicates that option premiums are expensive. Low IV is generally associated with cheap options. The International Securities Exchange’s web site is a great source of implied volatility charts (Link).

1 user commented on " Options 101: Implied Volatility (IV) "
Follow-up comment rss or Leave a Trackbackthanks for the chart…honsetly, most brokers do NOT provide this (Tradeking does fortunately)…..CBOE does as well if you sign up for a free account on “paper trading”