May 22, 2020 at 2:48 PM
#210711
Keymaster
Dear all iv is forward looking volatility this type of volatility results from mkt price of options that trade on underlying. A result of increased buying of options by mkt participants is higher iv.When there is net selling of options the iv decreases.
This is not the potential direction of the underlying just the magnitude of the move.
When the mkt anticipates that a underlying may soon move dramatically the price of option contracts both put n call will move higher.