Implied Volatility - futures io
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Implied Volatility

Implied volatility (commonly referred to as volatility or IV) is a important metric to understand and to be aware of when trading options. IV is determined by the current price of option contracts on a particular stock or future. It is represented as a percentage that indicates the annualized expected one standard deviation range for the stock based on the option prices. For example, an IV of 25% on a $200 stock would represent a one standard deviation range of $50 over the next year.



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