Implied volatility is the real-time estimation of an asset’s price as it trades.. This is directly influenced by the supply and demand of the underlying options and by the market's expectation of the share price's direction. As expectations rise, or as the demand for an option increases, implied volatility will rise which results in higher-priced option premiums.
Implied Volatility
What is implied volatility? How does it affect option value?
Written by Olive. Updated over a week ago
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