"All stocks in the market have unique personalities in terms of implied volatility (their option prices). For example, one stock might have an implied volatility of 30%, while another has an implied volatility of 50%. Even more, the 30% IV stock might usually trade with 20% IV, in which case 30% is high. On the other hand, the 50% IV stock might usually trade with...
This simple script collects data from FTX:BVOLUSD to plot BTC’s implied volatility as a standalone indicator instead of a chart.
Implied volatility is used to gauge future volatility and often used in options trading.