Market Implied Volatility Back Jon "DRJ" Najarian, the venerable CBOE option market maker defines Market Implied Volatility in this fashion: "Option pricing is very similar to the pricing of insurance on a given asset. If you live in an urban area, the likelihood of your car being stolen is much higher than that of that same car being stolen in a rural setting. Thus, you would expect to pay a higher premium to insure a car in the city versus that car on a farm. Similarly, a given stock’s movement is much less predictable ahead of earnings, new product announcements and litigation. Therefore, we use high volatility readings as a sign that the market expects something extraordinary and low volatility readings as the reverse." At Hamzei Analytics, we use MIVs to measure & relatively rank the riskiness of various stocks, HOLDRs & indices.  Our MIV engine also serves as a major building block for feeding an 8-way time-to-expiration & price balancing dataset for each component of our popular Real-Time Volatility Matrix. MIV values foretell most about an asset from its high volume option strikes. This always coincides with At-The-Money options.  Thus all MIV are computed for ATM call & put options.         HA YouTube Channel  :::  HA Blog  :::  Testimonials  :::  Tutorials & FAQs  :::  Privacy Policy Trading Derivatives (Options & Futures) contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading derivatives. Past performance is not necessarily indicative of future results. Testimonials appearing on this website may not be representative of other clients or customers and are not a guarantee of future performance or success. (c) 1998-2025, Hamzei Analytics, LLC.®   All Rights Reserved.