For near the money options the IV is at 30. Seems too high to me. That's what, a move of $60 or so by end of June? Stock has been moving up/down 1 point a day for past 2 weeks.
Where did you get $60 from? 1 Std is about $21 based the current stock price, volatility and time to expiry, and the ATM (230 stike) June straddle is trading at about $16.20. So the market expects a move that is smaller than 1 Std.
I admit, I started the thread as a way to assist me as I study options. I think I see where I went wrong. IV is an an annual volatility. I thought at first that IV was the vol for the period remaining for the option. So this is the correct way, right? To get weekly vol, I divide the IV of 30 by square root of 52 weeks [7.2] which equals approx 2.75 weekly vol. So, 1 std dev is 2.75% x $230. So about 6.3 pts or less a week 68% of the time for GOOG. That makes sense since GOOG has been moving up/down about about 3 or 4 points a week for past 2 weeks. I think I'm starting to get this.