This applies to all options, but using an example: NVDA is at 13.5. DITM SEPT 45P at $31, has an IV of ~188% I am really confused about this. I understand what standard deviation is, but in this context it's basically saying the 45P has a 68% chance of staying between ($31-$55) and ($31+$55) range by sept expiration(of course it will!). And gets even more ridculus as you increase to 2 std. Why are the IV so high for DITM contracts? I have a feeling it's one of those things that will make perfect sense once you see it, but i just dont.