What is iv in option trading?

When the market declines rapidly, implied volatility (IV) tends to increase rapidly. If there is a Black Swan, or similar event (market plunge), IV is likely to explode

IV percentile (IVP) is a relative measure of Implied Volatility that compares current IV of a stock to its own Implied Volatility in the past. Put simply, IVP tells you the

High IV (or Implied Volatility) affects the prices of options and can cause them to swing more than even the underlying stock. Just like it sounds,

Going by the broader market perspective, the definition of high IV and low IV changes depending upon the market scenario.

Implied volatility (IV) is the market's forecast of a likely movement in a security's price. It is often used to determine trading strategies and to set prices for option"What Is Implied Volatility (IV)? · Option Pricing Models and IV · Factors Affecting IV