Implied volatility is the size of future movement the market is pricing into an option. High IV means options are expensive because a big move is expected; low IV means the market expects things to stay calm.
IV often climbs ahead of a known event like earnings, then collapses once the news is out ("IV crush"). That's why an option can lose value even when the stock moves your way — you paid for expected movement that then disappeared.
Related terms
- Catalyst — A news event (earnings, filing, deal) that helps explain why a ticker is active.
- Put/call ratio — Put volume divided by call volume. A rough gauge — read at extremes, not literally.
- DTE (days to expiration) — Days to expiration. Drives how fast an option decays and how sensitive it is to price.
See it in the flow
Open the dashboard to watch real options flow free, or read the beginner guides. Watch-only — not financial advice.