Can someone explain to me how to interpret IV? I tried to do research on the web to get a better grasp of this concept, but it always seems to confuse me. The higher the iv, the higher the option premiums will be in relationship to their expiration. Is this correct? I also read that there is numerous methods of calculating the IV, and that there is no standardized method of calculating it. I guess what annoys the piss out of me is that I can't figure out why I even should care about the IV. Shouldn't I be able to see the bloated option premium in relation to the stock price and derrive the same information I would by looking at the IV?