Estimate of the volatility of the underlying stock
Low implied volatility –> Option considered cheap
Don’t blindly buy or sell based on Implied Volatility. There may, in fact, be a good reason why the options are expensive. Perhaps the company is involved in a major litigation, or it is a biotech company that has a major drug up for review before the FDA. Conversely, if options are very cheap, perhaps the company has agreed on an all -cash buyout.
Index Symbols begin with $
Futures Symbols begin with @
Credits: https://www.optionstrategist.com/products/category/free-analysis-tool
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