implied volatility vs time-to-maturity

Discussion in 'Options' started by am123, Jul 16, 2012.

  1. am123

    am123

    Hi I'm new to options trading and had a question. I was wondering if there was any relationship, between implied volatility and time to maturity, found in the market place for any assets? I cant seem to find a definitive answer online. My first guess would be that implied vol tends to decrease slightly (and converges to its expected volatility maybe) as time to maturity increases, because when an option has more time to go random shocks won't affect its value as much.

    thanks for any help!