› Forums › F&O › Option Chain Analysis › relation between iv and demand of option › Reply To: relation between iv and demand of option
May 22, 2020 at 3:51 PM
#222960
Implied volatility 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. Options that have high levels of implied volatility will result in high-priced option premiums.