Advanced Option Chain Analysis (BANKNIFTY)

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Green means highest oi / volume, Yellow means second highest oi / volume and Blue means third highest oi / volume.

CALLS								PUTS
#	OI	OI Change	Volume	IV	LTP	Price Chn.	Strike	#	OI	OI Change	Volume	IV	LTP	Price Chn.
	23	0	0	0	0.00	0.00	43,000		3,567	-31	2,142	54.80	1.65	-0.60
	0	0	0	0	0.00	0.00	43,500		459	5	205	55.37	2.80	0.10
	130	0	0	0	0.00	0.00	44,000		625	-168	497	53.53	2.90	-0.05
	4	0	0	0	0.00	0.00	44,500		246	-69	338	50.36	2.25	-0.65
	735	0	0	0	0.00	0.00	45,000		5,103	-529	2,135	49.71	3.00	-0.20
	0	0	0	0	0.00	0.00	45,300		149	0	0	47.68	0.00	0.00
	0	0	0	0	0.00	0.00	45,400		113	-1	7	48.57	3.30	-2.55
	1	0	0	0	0.00	0.00	45,500		441	13	106	47.82	3.05	-0.15
	0	0	0	0	0.00	0.00	45,600		215	0	3	47.04	2.80	-0.50
	0	0	0	0	0.00	0.00	45,700		145	1	129	47.52	3.40	-0.95
	0	0	0	0	0.00	0.00	45,800		98	0	140	46.85	3.20	-4.35
	0	0	0	0	0.00	0.00	45,900		226	3	23	46.25	3.05	-0.60
	1	0	0	0	0.00	0.00	46,000		3,693	-62	1,310	46.47	3.50	-0.10
	0	0	0	0	0.00	0.00	46,100		71	-7	23	46.97	4.25	0.90
	0	0	0	0	0.00	0.00	46,200		93	0	0	45.85	0.00	0.00
	0	0	0	0	0.00	0.00	46,300		77	-9	14	45.66	3.80	-1.30
	0	0	0	0	0.00	0.00	46,400		64	0	0	44.37	0.00	0.00
	0	0	0	0	0.00	0.00	46,500		790	-18	172	45.15	4.05	-0.30
	0	0	0	0	0.00	0.00	46,600		59	0	0	44.67	0.00	0.00
	0	0	0	0	0.00	0.00	46,700		46	0	0	42.41	0.00	0.00
	0	0	0	0	0.00	0.00	46,800		82	1	117	45.15	5.25	-0.65
	0	0	0	0	0.00	0.00	46,900		19	0	0	42.81	0.00	0.00
	43	-1	2	0	10980.00	908.00	47,000		2,865	30	1,766	42.68	3.60	-0.55
	0	0	0	0	0.00	0.00	47,100		33	0	2	43.72	5.00	-0.15
	0	0	0	0	0.00	0.00	47,200		217	0	3	43.85	5.60	0.70
	1	0	0	0	0.00	0.00	47,300		129	0	16	42.51	4.55	0.00
	0	0	0	0	0.00	0.00	47,400		158	0	3	41.62	4.05	-0.75
	0	0	0	0	0.00	0.00	47,500		955	4	718	41.58	4.40	-0.95
	0	0	0	0	0.00	0.00	47,600		43	-16	39	41.23	4.45	-0.55
	0	0	0	0	0.00	0.00	47,700		39	0	1	40.98	4.60	-2.35
	0	0	0	0	0.00	0.00	47,800		109	-14	183	40.35	4.35	-0.50
	0	0	0	0	0.00	0.00	47,900		151	0	33	40.06	4.45	-0.50
	412	-3	7	0	9899.00	349.00	48,000		5,936	-1,107	6,581	39.71	4.50	-1.25
	0	0	0	0	0.00	0.00	48,100		214	-4	66	39.92	5.20	0.25
	0	0	0	0	0.00	0.00	48,200		147	0	83	39.77	5.50	-0.15
	0	0	0	0	0.00	0.00	48,300		92	5	26	39.05	5.10	-0.50
	0	0	0	0	0.00	0.00	48,400		111	-2	74	38.70	5.15	-0.50
	0	0	0	0	0.00	0.00	48,500		1,937	-295	2,259	38.47	5.35	-0.95
	0	0	0	0	0.00	0.00	48,600		228	-7	155	37.80	5.00	-1.00
	0	0	0	0	0.00	0.00	48,700		163	-3	123	37.48	5.10	-0.45
	0	0	0	0	0.00	0.00	48,800		261	-1	112	37.01	5.00	-0.80
	0	0	0	0	0.00	0.00	48,900		240	20	117	36.85	5.30	-0.50
	686	-31	35	0	8803.00	491.20	49,000		8,943	254	8,942	37.13	6.25	-0.55
	0	0	0	0	0.00	0.00	49,100		114	-47	143	36.57	6.00	-0.45
	0	0	0	0	0.00	0.00	49,200		216	-11	138	35.86	5.55	-0.80
	0	0	0	0	0.00	0.00	49,300		197	1	273	35.50	5.60	-1.05
	0	0	0	0	0.00	0.00	49,400		308	-22	52	35.38	6.00	-0.90
	98	0	1	0	8500.00	3439.25	49,500		4,110	-584	4,027	34.99	6.00	-1.45
	0	0	0	0	0.00	0.00	49,600		327	20	483	34.26	5.50	-1.65
	0	0	0	0	0.00	0.00	49,700		261	2	280	34.14	5.90	-1.00
	0	0	0	0	0.00	0.00	49,800		612	-18	691	33.38	5.35	-1.55
	0	0	0	0	0.00	0.00	49,900		278	-19	295	33.22	5.70	-1.80
	2,087	-21	29	0	7996.20	399.65	50,000		17,527	-2,487	14,881	33.21	6.30	-2.15
	1	0	0	0	0.00	0.00	50,100		710	1	284	32.84	6.35	-1.55
	7	0	0	34.26	0.00	0.00	50,200		231	-3	206	33.86	9.10	0.80
	0	0	0	0	0.00	0.00	50,300		312	-7	472	32.42	7.00	-2.70
	8	0	0	0	0.00	0.00	50,400		317	-9	465	32.16	7.25	-1.10
	24	0	2	0	7447.00	2165.60	50,500		5,705	-582	6,271	32.30	8.35	-1.40
	3	0	0	23.61	0.00	0.00	50,600		112	-10	181	31.54	7.60	-2.50
	0	0	0	0	0.00	0.00	50,700		329	-42	112	31.29	7.90	-2.00
	1	0	0	19.34	0.00	0.00	50,800		315	-56	183	31.09	8.35	-1.25
	6	0	0	7.46	0.00	0.00	50,900		285	-17	144	30.42	7.75	-2.70
	865	71	177	0	7002.20	403.40	51,000		13,385	-2,140	19,858	30.36	8.50	-2.00
	2	0	0	20.78	0.00	0.00	51,100		379	-34	102	30.35	9.45	-2.35
	9	0	0	0	0.00	0.00	51,200		589	-12	289	30.03	9.65	-1.30
	27	0	1	0	6507.00	207.00	51,300		438	-31	524	29.36	9.00	-3.20
	19	0	0	0	0.00	0.00	51,400		317	-8	271	28.86	8.75	-3.10
	222	0	2	0	6490.00	410.00	51,500		6,186	223	13,510	28.64	9.20	-3.30
	42	0	0	0	0.00	0.00	51,600		237	3	226	28.09	8.85	-4.60
	49	0	0	0	0.00	0.00	51,700		566	-54	1,853	27.67	8.80	-4.05
	29	0	0	23.03	0.00	0.00	51,800		377	-100	743	27.35	9.00	-5.05
	12	0	0	0	0.00	0.00	51,900		577	-146	449	27.31	10.00	-4.70
	1,611	-31	118	0	6004.75	409.30	52,000		17,998	-5,089	34,259	26.94	10.10	-4.95
	22	0	0	0	0.00	0.00	52,100		687	139	12,962	26.52	10.05	-5.95
	44	0	0	27.1	0.00	0.00	52,200		518	-207	8,500	26.25	10.45	-5.70
	52	0	0	0	0.00	0.00	52,300		636	-265	1,224	25.84	10.45	-7.00
	34	0	0	16.28	0.00	0.00	52,400		729	114	1,165	25.82	11.70	-6.30
	556	-12	17	0	5380.00	286.60	52,500		11,500	-3,747	25,876	25.20	11.00	-7.65
	62	0	0	0	0.00	0.00	52,600		717	-176	1,486	25.04	11.85	-8.05
	89	0	0	0	0.00	0.00	52,700		830	160	960	24.66	11.95	-9.10
	99	0	0	0	0.00	0.00	52,800		857	-88	1,129	24.06	11.30	-10.40
	175	0	0	0	0.00	0.00	52,900		890	-75	1,815	24.11	13.00	-9.90
	3,745	-72	208	0	5007.00	406.40	53,000		23,140	-1,313	37,469	23.79	13.35	-10.50
	344	0	1	0	4900.00	609.05	53,100		1,324	-15	1,197	23.15	12.50	-12.85
	430	-3	7	0	4578.30	226.85	53,200		2,373	271	2,775	23.11	14.00	-13.15
	597	-16	30	0	4561.75	321.75	53,300		1,394	-112	1,352	22.94	15.10	-12.90
	485	0	8	0	4657.40	489.00	53,400		1,724	-54	1,433	22.65	15.70	-13.85
	10,640	-94	271	0	4508.40	407.25	53,500		24,743	908	45,519	22.21	15.65	-15.35
	1,547	-6	12	0	4288.25	304.15	53,600		2,407	-48	1,091	22.25	18.00	-14.65
	518	-3	9	0	4185.40	334.40	53,700		1,672	-628	2,711	22.00	19.00	-15.40
	823	-15	32	0	4211.20	394.05	53,800		2,704	-182	4,265	21.48	18.50	-17.90
	856	-5	9	0	4099.65	426.55	53,900		2,246	429	3,249	21.31	20.00	-18.50
	29,591	-317	667	0	4020.00	414.90	54,000		48,395	897	58,257	20.89	20.15	-20.80
	1,394	-22	35	0	3895.85	372.85	54,100		2,918	343	2,959	20.75	22.00	-21.30
	1,872	-20	50	0	3791.85	378.60	54,200		4,920	959	9,802	20.53	23.50	-22.30
	2,071	-138	172	0	3720.00	383.95	54,300		3,667	-78	3,466	20.15	24.00	-24.75
	3,813	-52	170	0	3604.60	368.60	54,400		3,277	61	4,143	19.88	25.30	-26.60
	12,792	-363	708	0	3530.00	396.95	54,500		21,548	2,616	42,107	19.43	25.35	-29.60
	2,579	-319	535	0	3436.40	384.75	54,600		3,364	108	4,888	19.46	29.15	-29.45
	1,456	-75	146	0	3297.00	358.35	54,700		3,467	187	4,596	18.98	29.10	-33.65
	1,521	-74	121	0	3229.75	373.05	54,800		4,238	-179	8,253	18.74	31.00	-37.00
	1,305	-93	144	0	3095.20	325.20	54,900		3,091	148	4,781	18.56	33.75	-38.50
	18,093	-1,123	4,129	0	3050.80	395.25	55,000		34,479	2,862	79,633	18.10	33.90	-43.80
	1,413	-58	114	0	2940.00	375.30	55,100		3,939	888	7,165	17.88	36.45	-46.80
	2,192	-214	311	0	2853.15	373.10	55,200		3,516	-369	5,658	17.59	38.55	-50.70
	4,315	-23	281	0	2748.15	360.20	55,300		4,512	-222	4,993	17.56	43.70	-52.85
	1,610	-14	36	0	2651.00	353.25	55,400		2,432	-342	4,532	17.22	45.75	-58.70
	17,525	-956	1,501	0	2555.00	366.60	55,500		27,386	5,813	38,381	17.13	51.00	-61.45
	1,328	-2	46	0	2456.50	351.25	55,600		2,115	172	4,498	16.78	53.35	-69.40
	1,029	-184	304	0	2370.00	348.45	55,700		2,492	714	7,688	16.58	57.90	-74.10
	981	-884	1,200	0	2266.95	332.25	55,800		2,811	196	7,755	16.41	63.45	-80.05
	1,634	-56	157	0	2175.00	334.30	55,900		3,834	629	7,293	16.13	67.65	-88.25
	18,333	-5,394	11,323	0	2080.00	325.05	56,000		29,454	2,087	73,691	16.01	75.00	-93.50
	1,318	-38	248	0	1962.20	297.40	56,100		1,957	156	6,307	15.76	80.80	-102.35
	1,621	-151	412	0	1902.00	306.10	56,200		2,545	102	6,804	15.60	88.80	-111.25
	1,063	-192	401	0	1796.05	293.05	56,300		2,345	465	8,637	15.39	96.60	-122.00
	1,366	-370	674	0	1720.50	295.30	56,400		2,305	-207	6,418	15.27	106.95	-129.95
	6,565	-1,017	4,381	0	1625.50	283.00	56,500		13,590	-2,856	53,796	15.27	121.45	-135.75
	1,028	-112	305	0	1549.00	286.40	56,600		2,162	93	5,932	14.92	128.60	-151.95
	2,617	-1,041	1,435	5.73	1451.35	256.20	56,700		4,647	160	10,623	14.74	140.70	-164.80
	2,048	-353	1,117	0	1325.95	207.20	56,800		7,002	2,754	14,192	14.60	155.00	-175.70
	1,448	-166	873	8.88	1288.00	239.65	56,900		3,617	228	9,106	14.79	180.60	-179.45
	18,729	-3,465	41,364	9.88	1218.85	239.30	57,000		29,365	4,287	89,249	14.39	190.05	-201.35
	1,771	-461	2,687	9.45	1123.10	210.30	57,100		3,473	752	14,416	14.48	216.45	-207.60
	2,935	-2,009	10,315	10.58	1070.00	222.20	57,200		6,346	329	19,579	14.44	241.00	-218.10
	4,533	-3,004	13,488	9.85	969.30	181.25	57,300		5,455	-900	22,225	14.23	261.35	-237.05
	4,088	-3,306	16,223	10.21	903.00	172.20	57,400		4,363	-1,432	21,207	13.96	281.05	-258.85
	17,533	-7,301	110,955	10.45	837.60	163.10	57,500		21,399	2,013	98,606	14.35	327.95	-255.20
	7,268	-4,762	45,943	10.73	777.50	154.40	57,600		6,844	-822	38,490	14.23	357.75	-270.60
	5,263	550	75,929	10.84	715.00	144.05	57,700		5,141	3,018	59,054	14.27	396.75	-282.90
	8,200	3,193	106,501	10.99	657.65	133.65	57,800		6,429	4,846	81,627	14.13	430.55	-299.60
	7,010	4,582	75,489	11.1	602.40	124.60	57,900		5,014	3,963	58,120	14.33	481.20	-304.20
	36,284	6,240	194,657	11.08	544.95	108.00	58,000		20,355	9,061	85,597	14.10	516.35	-328.40
	3,218	835	20,827	11.24	498.90	102.55	58,100		1,398	768	8,035	14.26	570.75	-332.70
	3,824	609	20,147	11.28	451.00	90.10	58,200		859	599	5,113	14.54	632.65	-327.90
	3,747	783	14,266	11.36	408.00	82.45	58,300		637	130	2,504	14.36	678.05	-343.40
	3,059	1,019	14,958	11.29	362.10	68.00	58,400		339	249	1,584	14.13	724.05	-373.25
	16,725	3,692	55,359	11.36	325.10	59.85	58,500		4,310	1,469	9,897	14.51	797.50	-371.70
	1,535	139	10,618	11.33	287.35	49.15	58,600		119	95	527	14.60	861.60	-385.85
	1,683	231	9,231	11.49	260.00	48.45	58,700		86	53	187	15.11	945.00	-381.15
	1,924	278	10,339	11.42	226.50	35.90	58,800		52	46	179	14.94	1002.95	-424.55
	1,580	217	9,150	11.61	205.35	34.70	58,900		30	15	69	15.67	1098.10	-2596.05
	26,477	1,417	72,469	11.7	182.85	31.55	59,000		5,834	483	6,120	15.84	1173.10	-387.40
	1,760	75	5,625	11.8	163.00	27.95	59,100		0	0	0	0.00	0.00	0.00
	2,670	1,100	7,872	11.87	143.90	24.05	59,200		0	0	0	0.00	0.00	0.00
	2,029	302	8,396	12.02	129.35	23.05	59,300		22	4	26	16.84	1424.50	-2565.50
	2,436	508	6,960	11.98	111.15	16.50	59,400		0	0	0	0.00	0.00	0.00
	13,263	-171	34,659	12.06	97.90	14.65	59,500		401	92	425	16.81	1575.00	-414.15
	1,388	142	2,947	12.1	85.00	10.30	59,600		0	0	0	0.00	0.00	0.00
	3,205	1,210	7,593	12.2	75.00	9.05	59,700		0	0	0	0.00	0.00	0.00
	3,026	739	6,640	12.2	64.15	5.50	59,800		31	0	0	0.00	0.00	0.00
	1,047	87	3,337	12.19	54.60	2.25	59,900		0	0	0	0.00	0.00	0.00
	61,150	2,197	71,392	12.54	52.00	4.90	60,000		23,430	-144	2,877	18.63	2030.00	-432.05
	1,154	512	3,190	12.66	46.00	4.40	60,100		0	0	0	0.00	0.00	0.00
	804	-131	3,314	12.54	37.50	0.15	60,200		4	2	3	24.26	2358.40	-2381.60
	1,027	370	3,547	12.64	32.85	-0.25	60,300		5	0	0	26.31	0.00	0.00
	571	-186	2,256	12.77	29.20	-0.80	60,400		0	0	0	0.00	0.00	0.00
	9,592	392	22,705	13.14	28.45	2.20	60,500		122	2	91	21.76	2531.10	-450.50
	719	205	1,789	13.32	25.75	1.75	60,600		0	0	0	0.00	0.00	0.00
	1,921	1,297	4,607	13.41	22.60	0.65	60,700		0	0	0	0.00	0.00	0.00
	713	191	2,892	13.64	21.00	1.35	60,800		0	0	0	0.00	0.00	0.00
	642	174	2,694	13.67	18.00	0.05	60,900		0	0	0	0.00	0.00	0.00
	14,243	1,945	28,005	13.77	15.85	-0.75	61,000		1,547	10	78	24.56	3027.50	-383.30
	937	28	829	14.01	14.85	0.00	61,100		0	0	0	0.00	0.00	0.00
	1,303	126	3,442	14.19	13.55	-0.10	61,200		0	0	0	0.00	0.00	0.00
	263	-97	824	14.45	12.85	0.00	61,300		0	0	0	0.00	0.00	0.00
	161	-35	844	14.67	12.00	-0.30	61,400		0	0	0	0.00	0.00	0.00
	5,976	442	15,509	14.7	10.30	-1.15	61,500		171	0	9	27.15	3521.75	-372.15
	227	-46	1,991	14.8	9.15	-1.05	61,600		0	0	0	0.00	0.00	0.00
	191	-25	427	15.05	8.70	-0.90	61,700		0	0	0	0.00	0.00	0.00
	243	88	675	15.12	7.60	-1.00	61,800		0	0	0	0.00	0.00	0.00
	323	0	241	15.67	8.40	0.25	61,900		0	0	0	0.00	0.00	0.00
	13,909	-111	11,429	15.81	7.60	-0.30	62,000		1,897	-131	162	28.15	3985.85	-409.55
	145	34	171	15.97	7.00	0.00	62,100		0	0	0	0.00	0.00	0.00
	93	-24	210	15.63	5.00	-1.50	62,200		0	0	0	0.00	0.00	0.00
	326	-36	155	16.58	6.80	0.25	62,300		0	0	0	0.00	0.00	0.00
	342	159	773	16.72	6.20	0.35	62,400		0	0	0	0.00	0.00	0.00
	2,286	109	1,831	16.98	6.00	0.15	62,500		39	-9	11	36.22	4603.20	-574.70
	180	61	696	16.81	4.75	0.05	62,600		0	0	0	0.00	0.00	0.00
	191	77	359	17.81	6.50	1.35	62,700		0	0	0	0.00	0.00	0.00
	142	-5	114	17.56	5.00	0.00	62,800		0	0	0	0.00	0.00	0.00
	138	15	214	18.08	5.50	0.95	62,900		0	0	0	0.00	0.00	0.00
	12,901	404	7,191	18.15	4.90	0.65	63,000		1,670	-27	49	33.57	4991.40	-400.90
	17	12	50	18.35	4.65	0.15	63,100		0	0	0	0.00	0.00	0.00
	26	13	111	18.39	4.10	1.10	63,200		0	0	0	0.00	0.00	0.00
	335	-69	332	18.65	4.00	0.20	63,300		0	0	0	0.00	0.00	0.00
	1,567	-72	1,595	18.97	3.50	0.25	63,500		4	0	1	41.49	5600.00	-2356.75
	4,523	-82	3,179	20.02	2.85	0.30	64,000		1,071	-21	64	38.56	5992.60	-491.55
	849	-67	655	21.57	3.00	0.60	64,500		0	0	0	0.00	0.00	0.00
	4,194	352	2,969	22.79	2.75	0.55	65,000		1,706	31	38	43.37	6993.70	-506.30
	2,164	225	1,500	25.75	2.95	0.55	66,000		657	-19	22	48.57	8003.10	-446.90
	1,664	445	2,357	28.64	1.95	-0.15	67,500		159	0	0	52.71	0.00	0.00
	2,550	347	28,689	31.94	1.65	-0.45	69,000		87	0	0	67.97	0.00	0.00

What is Option Chain?

An option chain is a listing of all the available options contracts for a particular underlying asset, such as a stock, commodity, or currency. It typically includes the expiration date, strike price, and the bid and ask price for each option contract.

An option chain can be used to find the right options contract to trade. For example, a trader can use an option chain to find options contracts with expiration dates and strike prices that align with their investment goals and risk tolerance. They can also use the bid and ask prices to determine the price at which they can buy or sell an options contract.

What is Future & Options?

In futures trading, a buyer and seller agree to trade an underlying asset at a certain price on a future date. The buyer is obligated to purchase the asset, while the seller is obligated to sell it. This can be used to hedge against price changes in the underlying asset, or to speculate on future price movements. Options trading is similar, but it gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a certain price on or before a certain date. The buyer of an option pays a premium for this right. There are two main types of options: calls, which give the buyer the right to buy an underlying asset, and puts, which give the buyer the right to sell an underlying asset. Options can be used for hedging or speculation, as well as for creating more complex trading strategies.

Options trading is similar, but it gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a certain price on or before a certain date. The buyer of an option pays a premium for this right. There are two main types of options: calls, which give the buyer the right to buy an underlying asset, and puts, which give the buyer the right to sell an underlying asset. Options can be used for hedging or speculation, as well as for creating more complex trading strategies.

What is Open Interest?

Open interest is a measure of the number of outstanding option or futures contracts that have not been settled or closed. It represents the number of contracts that have been initiated, but not yet liquidated by an offsetting transaction or fulfilled by delivery.

Open Interest is a commonly used metric in options and futures trading, it can be found on most trading platforms, and it can provide valuable information for traders to analyze the market sentiment and liquidity of the underlying assets.

What is Change in Open Interest (OI)?

Change in OI means how many new contracts added or removed to current trading session as compared to last day trading session closing.

What are Options Greek?

Options Greeks are a set of metrics that are used to measure the sensitivity of an option's price to different factors, such as changes in the price of the underlying asset, changes in volatility, and changes in the time remaining until the option's expiration date. The main options Greeks are:

Delta: Measures the change in the option's price in relation to a change in the price of the underlying asset. A delta of 0.5, for example, means that if the underlying asset's price increases by $1, the option's price will increase by $0.50.

Gamma: Measures the change in delta in relation to a change in the price of the underlying asset. A high gamma means that delta is changing rapidly as the underlying asset's price changes, which can indicate a high level of risk.

Theta: Measures the change in the option's price in relation to the time remaining until the option's expiration date. A theta of -0.05, for example, means that if the option has one year until expiration, its value will decrease by $0.05.

Vega: Measures the change in the option's price in relation to a change in volatility. A vega of 0.10, for example, means that if volatility increases by 1%, the option's price will increase by $0.10.

Rho: Measures the change in the option's price in relation to the change in the interest rate. A high Rho means that the option's price is more sensitive to interest rate changes.

Options Greeks are important tools that traders can use to assess the risk and potential rewards of different options trades, and to make more informed decisions about how to manage their positions. It is important to note that these metrics are based on mathematical models and assumptions, which can be affected by market conditions and other factors.

What is Implied Volatility(IV)?

Implied volatility (IV) is a metric that is used to estimate the level of volatility that is implied by the current price of an option. It is derived mathematically from the option's price, strike price, expiration date, and other factors, using a model such as the Black-Scholes model.

Implied volatility is useful because it provides a measure of the market's expectation of how much the price of the underlying asset will fluctuate in the future. A high implied volatility suggests that the market expects the underlying asset's price to be more volatile, while a low implied volatility suggests that the market expects the underlying asset's price to be less volatile.