To The Moon

1.What is 30 Days' Implied Volatility

We use all options in the option chain to calculate the 30-days' implied volatility. It means a stock's implied volatility in the next 30 days. Also, we calculate IV/HisV and IV percentile to help to compare whether today's IV is high or low.

2.How to use

There're many strategies to use 30 Days' IV. For example, before the earnings report, the 30 Days' IV is high and IV percentile is 100.0, which means IV is at a record high compared with the past year. The market is pricing a volatile movement on the stock and making option prices fluctuate.

On the other hand, after the earnings report, IV tends to fall to mean value, causing option prices to plummet. So we can also use the straddle strategy to profit from IV change.

If a stock's IV is higher than another, does it mean the stock's option is more expensive?

For example, TWTR's IV is higher than C's. Does it mean we can short TWTR's IV and long C's? The answer is NO. Different stocks have different IV ranges, stocks in the technology industry tend to have higher IV, so we should compare their IV percentile. They have the same IV percentile, indicating they are all at the same IV level.

3.Feature Navigation

Stock detail page - Option - Analysis