CluenexGlossary · Options
Implied volatility
The yearly volatility that today’s option prices imply. Higher IV means pricier options.
Why it matters
IV is the market’s guess at how much the stock will move. It rises before earnings and in sell offs, and falls when things calm down.
How to read it
Compare IV with the stock’s own history (IV rank) and with how much it has actually been moving (historical volatility).
Also called: IV
Related
IV rankWhere today’s implied volatility sits between its lowest and highest level of the past year, from 0 to 100.Historical volatilityHow much the stock actually moved, measured from recent daily closes and stated yearly.Expected moveThe size of move the options market is pricing for a stock by a given date.VegaHow much an option’s price changes when implied volatility moves 1 point.
In the Cluenex app, this explanation opens next to every implied volatility figure, with the live reading for the stock you are looking at. Open it in Cluenex