How do they decide on a IV for options?

Discussion in 'Options' started by wxytrader, Oct 16, 2024.

  1. Solved.

    Implied volatility is primarily derived from the Black-Scholes model, which is quick in its calculation of option prices. This model requires to have all other inputs (stock price, expiration, etc.) to solve for IV%.
     
    Last edited: Oct 16, 2024
  2. maxinger

    maxinger


    Decoded.

    It seems like you are using the Excel sheet to do all the computations.



    upload_2024-10-16_19-56-49.png
     
  3. 2rosy

    2rosy

    Is the option price a required input?
     
  4. newwurldmn

    newwurldmn

    This is all wrong. Implied Vols are determined by the Rothschild's in conjunction with the Federal Reserve Bank in the US. All Options Prices and stock prices follow suit.
     
    Flynrider, MrMuppet, mervyn and 3 others like this.
  5. Yes the (google) sheet is calculating options prices but I have to plug in volatility...mm's get the volatility by reverse calculating for IV, but one of the inputs is price...but to get price you need IV...

    I have a sheet you can get here where you can calculate IV through an iterative method.
    https://www.wallstreetmojo.com/implied-volatility-formula/#Examples
     
  6. SHHH! You're giving away my edge here! The Federal Rothschild Bank gives me a heads up when they're going to decide on option prices, and I front-run all the fools who think it's from that BS formula.

    (I mean... Bee Ess? If that's not enough for the suckers to figure it out, they deserve to be taken for all they've got. Oh - there's the FRB signaling me now! Gotta go!)
     
    Overnight likes this.
  7. Overnight

    Overnight

    A rare BWS sighting in the wild!

    (Mums the word!)
     
    BlueWaterSailor likes this.
  8. They/Them/Zir/Zhit/Zhe?