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Implied volatility calculator

Back out an option’s implied volatility from its market price.

Runs 100% in your browser
Implied volatility
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Delta
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Theta / day
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Vega / 1%
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How to calculate implied volatility

  1. Enter the market price. Type the option’s current market price (per share).
  2. Describe the contract. Set type, stock price, strike and days to expiry.
  3. Read the implied volatility. The IV that reproduces that price is shown, with the Greeks at that IV.

Using implied volatility

IV is the single most-watched input for option traders because it is forward-looking: it captures what the market expects, not what already happened. The same IV figure drives the expected move of the stock and, via the rule of 16, a quick daily-move estimate. Feed an IV back into the Black-Scholes calculator to price other strikes.

Educational tool only — not financial advice. IV is a model-derived estimate and assumes European-style options. Options trading carries a high level of risk.

Frequently asked questions

What is implied volatility?
Implied volatility (IV) is the volatility figure that makes the Black-Scholes price equal the option’s actual market price. It is the market’s forecast of how much the stock will move, expressed as an annualised percentage.
How is IV calculated?
There is no closed-form solution, so it is solved numerically. This tool uses Newton-Raphson with a bisection fallback to find the volatility that reproduces the price you enter.
Why is high IV important?
Higher IV means richer option premiums — good for sellers, expensive for buyers. Comparing an option’s IV to the stock’s historical volatility, or to its own IV range, is a common way to judge whether options are cheap or dear.
What if it returns 0% or looks wrong?
If the price you entered is at or below the option’s intrinsic value there is no time value to imply volatility from, so it returns ~0%. Double-check the price, strike and days to expiry.
Is anything uploaded?
No. The solver runs entirely in your browser.

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