Source: https://mochatrade.com/learn/glossary/implied-volatility

# Implied volatility
URL: https://mochatrade.com/learn/glossary/implied-volatility
Last modified: 2026-10-17

Implied volatility is the volatility an option's price implies, worked backward from the premium: the market's priced expectation of the move. It rises into [earnings](https://mochatrade.com/learn/us-market-structure/us-earnings-explained) and collapses after, and the [VIX is implied volatility for the S&P 500](https://mochatrade.com/learn/start-here/how-to-read-us-market-news).

## Related terms

- S&P 500: https://mochatrade.com/learn/glossary/sp-500
- Expected move: https://mochatrade.com/learn/glossary/expected-move
- IV crush: https://mochatrade.com/learn/glossary/iv-crush
- Option open interest: https://mochatrade.com/learn/glossary/option-open-interest
- Options contract: https://mochatrade.com/learn/glossary/options-contract
- Market correction: https://mochatrade.com/learn/glossary/market-correction

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.