What is Implied Volatility (IV)?
Implied volatility (IV) is the expected future volatility of the underlying that is implied by an option's market price, expressed as an annualised percentage. It is worked out backwards from the option premium using a pricing model such as Black-Scholes.
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Why IV matters
Higher IV means higher option premiums for both calls and puts, because the market expects bigger moves. IV usually rises before events such as results, RBI policy or the Union Budget and falls after them (IV crush).
India VIX is calculated from the implied volatility of NIFTY options and is often called the market's fear gauge.
IV in the AOC option chain
The first column on each side of the AOC option chain shows the IV of that strike with its delta below it, so you can compare how the market prices different strikes.
