noun Internet Slang

IV

eye-VEE · noun · informal

Implied volatility — the market's expected size of future price swings.

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Definitions

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Implied volatility: the market's forecast of how much an asset will move, which directly inflates or deflates option prices. High IV makes options expensive.

“IV is sky-high into earnings, so the options are pricey.”
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IV In A Sentence

IV is sky-high into earnings, so the options are pricey.

Origin & Usage

Standard options terminology, constantly referenced in WSB options plays.

Variants I.V.implied vol
Tags #finance#stocks#wsb#options#volatility#pricing

People Also Ask

What does IV mean in options trading?

IV stands for implied volatility — the market's forecast of how much an asset is expected to move. It directly inflates or deflates option prices; high IV makes options more expensive.

Why does IV matter for traders?

Because it drives option premiums. Buying options when IV is high means paying more, and a drop in IV ('IV crush') can lose you money even if the stock moves your way.

When is IV usually highest?

IV tends to spike heading into major events like earnings, when uncertainty about the coming price move is greatest.

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