Implied Volatility Chart Overview for an Option Contract

Get an in-depth look at the implied volatility (IV) movements for a specific option throughout the trading day. The chart uses the midpoint IV of the bid and ask quotes, enabling you to track changes in IV and identify trends.

Key Insights:

• Dotted Red Line: Displays the previous day’s IV close, offering a reference point to easily assess how the current day’s IV has changed.
• Call & Put Trade Dots: Plots actual traded IV levels for calls and puts, allowing you to see how the traded IV compares to the midpoint IV. This visual highlights how trading activity can push IV to new levels throughout the day.

Additionally, you can switch to longer historical IV charts to view how this option's IV has evolved over time. This feature, combined with option volume trends, provides deeper insights into trading ranges, liquidity, and the dynamics of implied volatility across different periods.

This feature helps traders better understand the relationship between IV movements and trading activity, supporting more informed decision-making regarding price discovery, liquidity management, and assessing IV ranges for the option.