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.
	12,498	-137	3,735	18.41	4.40	-0.25	63,000		1,698	-7	32	36.15	5392.00	-286.55
	4	0	4	18.76	4.50	-1.30	63,100		0	0	0	0.00	0.00	0.00
	13	6	57	18.08	2.80	-1.65	63,200		0	0	0	0.00	0.00	0.00
	405	370	1,061	18.69	3.30	-0.15	63,300		0	0	0	0.00	0.00	0.00
	1,639	-95	1,845	19.26	3.30	-0.45	63,500		4	0	0	0.00	0.00	0.00
	4,605	34	2,326	20.09	2.50	-0.55	64,000		1,089	-6	9	45.41	6484.15	-170.65
	905	-92	747	21.45	2.50	-0.60	64,500		0	0	0	0.00	0.00	0.00
	3,842	-83	1,809	22.51	2.20	-0.80	65,000		1,677	0	2	51.04	7500.00	-140.00
	1,945	-27	234	25	2.10	-0.95	66,000		677	0	1	53.31	8450.00	-179.40
	1,219	-104	663	28.71	2.05	-1.00	67,500		159	0	0	52.71	0.00	0.00
	2,203	35	1,111	32.2	1.95	-1.00	69,000		87	0	2	66.34	11448.00	-252.00
	23	0	0	0	0.00	0.00	43,000		3,598	-31	3,338	52.86	2.15	-0.90
	0	0	0	0	0.00	0.00	43,500		457	29	108	52.74	3.15	-0.60
	130	0	0	0	0.00	0.00	44,000		793	-17	327	50.15	2.75	-1.35
	4	0	0	0	0.00	0.00	44,500		316	24	235	47.73	2.45	-1.95
	735	0	0	0	0.00	0.00	45,000		5,632	-1,311	3,331	47.41	3.50	-1.35
	0	0	0	0	0.00	0.00	45,300		149	-14	87	45.85	3.20	-1.05
	0	0	0	0	0.00	0.00	45,400		114	5	30	46.47	4.00	-1.00
	1	0	0	0	0.00	0.00	45,500		429	-17	32	45.36	3.40	-1.55
	0	0	0	0	0.00	0.00	45,600		215	0	30	44.85	3.30	-1.15
	0	0	0	0	0.00	0.00	45,700		144	0	36	45.69	4.35	-1.30
	0	0	0	0	0.00	0.00	45,800		98	0	0	47.10	0.00	0.00
	0	0	0	0	0.00	0.00	45,900		223	2	88	43.31	3.00	-2.10
	1	0	0	0	0.00	0.00	46,000		3,754	-123	812	43.52	3.45	-1.35
	0	0	0	0	0.00	0.00	46,100		78	-58	128	43.20	3.50	-1.30
	0	0	0	0	0.00	0.00	46,200		93	-7	21	44.10	4.70	-1.30
	0	0	0	0	0.00	0.00	46,300		86	0	0	43.38	0.00	0.00
	0	0	0	0	0.00	0.00	46,400		64	0	22	42.68	4.05	-1.45
	0	0	0	0	0.00	0.00	46,500		809	-35	222	42.45	4.20	-1.90
	0	0	0	0	0.00	0.00	46,600		59	3	20	42.96	5.15	-0.55
	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		81	-5	34	44.56	8.50	2.00
	0	0	0	0	0.00	0.00	46,900		19	0	0	42.81	0.00	0.00
	44	0	0	0	0.00	0.00	47,000		2,835	-263	2,577	41.07	4.75	-1.40
	0	0	0	0	0.00	0.00	47,100		33	-1	1	41.03	5.15	-0.60
	0	0	0	0	0.00	0.00	47,200		217	3	8	40.43	4.90	-2.00
	1	0	0	0	0.00	0.00	47,300		140	11	70	39.74	4.55	-1.55
	0	0	0	0	0.00	0.00	47,400		158	-1	3	39.58	4.80	-1.05
	0	0	0	0	0.00	0.00	47,500		951	-83	1,395	39.99	5.80	-1.35
	0	0	0	0	0.00	0.00	47,600		59	0	31	38.98	5.00	-1.40
	0	0	0	0	0.00	0.00	47,700		39	0	0	38.42	0.00	0.00
	0	0	0	0	0.00	0.00	47,800		122	-138	655	39.89	7.40	0.25
	0	0	0	0	0.00	0.00	47,900		151	-41	80	37.84	5.00	-1.65
	416	-4	5	0	9550.00	350.00	48,000		7,043	-314	2,818	38.74	6.80	-0.65
	0	0	0	0	0.00	0.00	48,100		218	-36	241	37.12	5.05	-2.10
	0	0	0	0	0.00	0.00	48,200		147	-35	62	37.19	5.65	-1.25
	0	0	0	0	0.00	0.00	48,300		87	-37	44	36.77	5.60	-1.50
	0	0	0	0	0.00	0.00	48,400		113	-61	100	36.42	5.65	-1.40
	0	0	0	0	0.00	0.00	48,500		2,234	52	1,296	36.31	6.05	-2.45
	0	0	0	0	0.00	0.00	48,600		235	-33	233	36.69	7.30	-0.50
	0	0	0	0	0.00	0.00	48,700		166	-35	101	35.31	5.70	-2.00
	0	0	0	0	0.00	0.00	48,800		262	-34	198	34.58	5.20	-2.65
	0	0	0	0	0.00	0.00	48,900		246	2	140	34.94	6.30	-4.20
	717	0	0	0	0.00	0.00	49,000		8,689	-621	8,758	34.67	6.50	-2.50
	0	0	0	0	0.00	0.00	49,100		162	-6	132	35.37	8.50	-0.60
	0	0	0	0	0.00	0.00	49,200		227	0	151	33.60	6.00	-2.50
	0	0	0	0	0.00	0.00	49,300		198	-28	179	33.70	6.80	-2.45
	0	0	0	0	0.00	0.00	49,400		337	-20	238	33.31	6.80	-2.60
	98	0	0	0	0.00	0.00	49,500		4,694	-2,911	6,842	33.35	7.60	-1.85
	0	0	0	0	0.00	0.00	49,600		307	-10	155	32.51	6.75	-2.60
	0	0	0	0	0.00	0.00	49,700		259	-5	77	32.37	7.20	-2.45
	0	0	0	0	0.00	0.00	49,800		633	-20	654	32.34	7.90	-2.15
	0	0	0	0	0.00	0.00	49,900		300	-3	27	31.75	7.50	-3.25
	2,109	-92	175	0	7595.25	296.40	50,000		20,006	-1,223	13,486	32.02	8.90	-2.80
	1	0	0	0	0.00	0.00	50,100		709	-13	302	31.10	7.75	-5.50
	7	0	0	34.26	0.00	0.00	50,200		234	-6	259	31.06	8.50	-4.05
	0	0	0	0	0.00	0.00	50,300		316	-11	96	31.23	9.85	-2.05
	9	0	1	0	7129.45	2702.50	50,400		326	-17	152	30.32	8.60	-4.05
	24	0	0	0	0.00	0.00	50,500		6,387	-291	4,458	30.46	9.90	-3.40
	3	0	0	23.61	0.00	0.00	50,600		122	-26	105	29.77	9.15	-4.40
	0	0	0	0	0.00	0.00	50,700		371	-9	150	30.07	11.00	-2.90
	1	0	0	19.34	0.00	0.00	50,800		378	-24	170	28.97	9.10	-5.80
	6	0	0	7.46	0.00	0.00	50,900		309	-97	354	29.05	10.35	-4.75
	795	19	120	0	6595.80	276.00	51,000		15,536	-318	15,789	29.01	11.40	-3.15
	2	0	0	20.78	0.00	0.00	51,100		409	-17	277	29.00	12.60	-3.35
	9	-7	7	0	6284.25	2358.35	51,200		601	-24	236	28.39	11.95	-4.35
	27	1	1	0	6300.00	297.00	51,300		469	4	106	28.16	12.50	-4.90
	19	0	0	0	0.00	0.00	51,400		325	-24	176	28.02	13.40	-3.85
	222	0	2	0	6080.00	499.20	51,500		5,964	-2,099	8,912	27.51	13.05	-4.60
	42	0	0	0	0.00	0.00	51,600		235	-52	204	27.29	13.70	-5.30
	49	0	0	0	0.00	0.00	51,700		621	-125	536	26.82	13.45	-6.05
	29	0	0	23.03	0.00	0.00	51,800		475	-66	386	26.69	14.50	-5.75
	12	0	0	0	0.00	0.00	51,900		693	-31	343	26.52	15.45	-6.40
	1,643	-201	315	0	5592.10	280.45	52,000		23,099	-329	26,193	26.06	15.25	-6.95
	22	0	0	0	0.00	0.00	52,100		547	34	1,589	26.04	16.95	-7.05
	44	0	0	27.1	0.00	0.00	52,200		727	116	1,157	25.44	16.10	-8.80
	52	0	0	0	0.00	0.00	52,300		918	-999	3,095	25.39	17.75	-7.80
	34	0	0	16.28	0.00	0.00	52,400		618	-182	1,472	24.87	17.30	-10.10
	569	-11	43	0	5093.40	493.40	52,500		15,258	762	19,829	24.79	18.95	-9.35
	62	0	0	0	0.00	0.00	52,600		880	388	1,619	24.52	19.70	-10.30
	89	0	0	0	0.00	0.00	52,700		670	-71	720	24.44	21.60	-10.20
	99	-1	1	0	4750.00	650.00	52,800		946	-1,613	4,244	24.08	21.95	-12.25
	175	0	0	0	0.00	0.00	52,900		969	-76	1,443	23.78	22.70	-12.65
	3,815	-135	448	0	4575.80	243.00	53,000		24,478	1,872	29,832	23.52	23.75	-12.95
	344	0	0	0	0.00	0.00	53,100		1,337	20	970	23.54	26.75	-11.75
	434	-2	6	0	4351.45	398.45	53,200		2,102	48	1,350	23.22	27.55	-13.25
	614	-4	9	0	4240.00	376.10	53,300		1,509	-392	1,284	22.86	28.15	-15.05
	485	-7	17	0	4168.40	456.40	53,400		1,778	46	1,258	22.71	30.30	-15.10
	10,734	-67	119	0	4111.15	264.50	53,500		23,835	1,682	25,332	22.48	32.00	-16.15
	1,553	0	2	0	3984.10	251.20	53,600		2,460	15	1,567	22.26	33.90	-16.90
	522	-28	45	0	3851.00	206.90	53,700		2,305	2	2,311	21.89	34.65	-19.10
	839	-128	150	0	3793.00	276.45	53,800		2,886	624	3,754	21.62	36.35	-20.15
	861	-40	60	0	3673.10	217.10	53,900		1,817	20	2,071	21.45	39.00	-21.45
	29,931	-509	868	0	3614.00	254.25	54,000		47,503	782	43,498	21.23	41.50	-22.65
	1,417	-25	40	0	3523.00	238.00	54,100		2,575	118	2,238	20.92	43.15	-24.60
	1,893	-19	41	0	3421.40	275.40	54,200		3,966	-19	6,241	20.78	46.70	-25.90
	2,210	-91	110	0	3327.30	262.15	54,300		3,770	-85	3,658	20.46	48.55	-27.90
	3,868	-72	126	0	3251.60	272.45	54,400		3,244	22	4,139	20.26	51.90	-30.35
	13,161	-123	463	0	3117.90	230.50	54,500		19,025	1,329	29,562	20.04	55.20	-32.25
	2,901	-233	261	0	3034.60	238.45	54,600		3,288	-206	3,490	19.92	60.15	-32.80
	1,534	-80	131	0	2926.60	251.40	54,700		3,280	-17	5,132	19.52	61.60	-37.75
	1,596	-94	124	0	2852.50	218.25	54,800		4,417	-29	6,001	19.49	68.55	-37.05
	1,404	-16	37	0	2770.00	250.75	54,900		2,962	-204	3,490	19.32	73.80	-39.50
	19,220	-982	3,056	0	2643.00	224.00	55,000		32,537	934	48,087	19.17	79.95	-42.40
	1,472	-69	156	0	2552.25	209.85	55,100		3,054	467	4,090	18.89	84.20	-46.50
	2,409	-125	286	0	2458.00	216.15	55,200		3,886	103	6,293	18.76	91.65	-48.50
	4,344	-122	586	0	2381.65	219.55	55,300		4,743	377	4,195	18.75	101.95	-49.00
	1,626	-42	82	0	2281.20	209.00	55,400		2,774	234	3,473	18.45	107.20	-54.40
	18,484	-304	1,613	0	2178.10	199.85	55,500		21,575	1,154	23,076	18.31	116.30	-59.30
	1,333	-56	71	0	2102.60	203.25	55,600		1,961	258	3,983	18.03	122.95	-64.45
	1,218	-58	184	0	2006.65	195.45	55,700		1,793	79	4,191	17.84	132.05	-71.55
	1,866	-154	281	0	1920.05	192.00	55,800		2,616	-66	4,688	17.71	143.50	-76.25
	1,692	-170	250	0	1838.20	203.80	55,900		3,206	57	4,995	17.62	156.95	-78.25
	23,745	-1,640	6,706	0	1746.00	176.60	56,000		27,390	597	53,649	17.48	169.95	-85.45
	1,361	-71	182	0	1664.00	177.50	56,100		1,821	78	4,091	17.30	182.75	-92.95
	1,771	-80	211	0	1579.40	170.50	56,200		2,443	237	5,810	17.26	201.00	-97.20
	1,268	-75	351	7.41	1494.75	164.15	56,300		1,895	31	5,652	17.24	221.00	-98.00
	1,736	-106	357	9.04	1419.00	162.40	56,400		2,526	248	6,857	17.14	240.00	-109.00
	7,595	-610	5,549	9.06	1328.35	145.50	56,500		16,397	3,725	40,208	17.13	263.70	-109.50
	1,141	-161	406	9.99	1259.40	134.65	56,600		2,079	-71	6,029	16.85	279.40	-124.35
	3,658	-186	1,181	9.85	1170.85	122.70	56,700		4,492	875	10,956	16.81	305.10	-129.00
	2,409	-410	2,715	9.62	1081.35	99.65	56,800		4,300	531	12,325	16.78	332.75	-133.50
	1,613	-132	1,945	10.81	1037.35	121.30	56,900		3,392	533	12,638	16.71	360.80	-142.00
	22,853	-3,529	66,362	10.91	965.05	110.50	57,000		25,114	2,146	82,314	16.61	389.15	-154.05
	2,234	-1,082	13,595	10.85	890.00	94.80	57,100		2,729	-651	22,394	16.87	434.25	-151.65
	4,947	-1,814	36,592	11.15	831.50	92.70	57,200		6,032	-576	34,647	16.62	460.70	-168.30
	7,586	-3,425	57,550	11.36	773.00	85.25	57,300		6,359	-698	45,156	16.60	498.55	-173.95
	7,504	111	53,532	11.61	720.15	84.30	57,400		5,803	1,246	39,694	16.70	543.65	-177.60
	24,868	-1,008	157,908	11.75	666.05	78.95	57,500		19,425	6,105	111,708	16.68	585.90	-186.80
	12,056	7,330	68,971	11.91	616.00	74.95	57,600		7,659	6,092	49,184	16.64	629.30	-195.25
	4,699	529	26,866	12.02	566.90	69.50	57,700		2,123	572	14,653	16.76	682.00	-198.60
	5,003	1,065	25,359	12.12	520.60	64.40	57,800		1,586	545	6,593	16.62	725.30	-210.25
	2,430	506	17,797	12.01	468.35	52.65	57,900		1,049	254	2,732	17.23	803.35	-187.10
	30,126	2,282	123,332	12.24	433.90	54.05	58,000		11,299	1,378	25,535	17.06	850.00	-213.65
	2,385	788	9,773	12.41	399.40	52.20	58,100		628	325	2,113	17.50	924.65	-205.80
	3,217	303	11,047	12.3	355.80	39.20	58,200		268	98	581	17.53	984.00	-216.10
	2,986	145	13,028	12.29	319.30	33.30	58,300		508	-11	1,852	17.18	1029.00	-223.30
	2,047	768	10,085	12.48	293.50	33.85	58,400		90	7	155	17.40	1100.20	-242.90
	13,098	82	37,345	12.52	264.00	30.50	58,500		2,843	242	3,082	17.57	1171.15	-243.20
	1,398	-34	5,932	12.56	237.00	25.55	58,600		24	8	43	17.74	1243.75	-294.35
	1,491	289	7,367	12.51	209.00	18.65	58,700		32	-10	24	18.12	1326.15	-247.25
	1,649	411	8,736	12.63	189.10	17.70	58,800		5	-1	2	18.96	1427.50	-2763.30
	1,369	325	7,657	12.74	170.65	16.60	58,900		15	0	0	0.00	0.00	0.00
	25,163	1,402	76,750	12.72	150.00	12.25	59,000		5,363	629	3,135	19.00	1570.00	-246.10
	1,688	168	4,693	12.83	135.00	10.70	59,100		0	0	0	0.00	0.00	0.00
	1,571	91	5,134	12.89	120.20	9.45	59,200		0	0	0	0.00	0.00	0.00
	1,727	588	5,855	12.99	107.95	8.15	59,300		18	0	0	0.00	0.00	0.00
	1,929	446	4,703	13	94.50	5.20	59,400		0	0	0	0.00	0.00	0.00
	13,439	730	33,096	13.07	84.00	4.80	59,500		310	-92	260	20.32	1992.10	-255.40
	1,248	35	3,122	13.11	73.70	2.25	59,600		0	0	0	0.00	0.00	0.00
	1,996	-45	3,408	13.24	66.50	3.10	59,700		0	0	0	0.00	0.00	0.00
	2,293	239	3,570	13.22	57.15	0.15	59,800		31	0	0	0.00	0.00	0.00
	970	69	2,101	13.47	53.35	2.20	59,900		0	0	0	0.00	0.00	0.00
	59,561	4,849	66,164	13.52	46.95	0.80	60,000		23,567	-404	1,764	22.99	2474.25	-264.80
	633	-29	2,572	13.63	42.00	0.70	60,100		0	0	0	0.00	0.00	0.00
	935	288	2,598	13.81	38.40	1.35	60,200		2	0	0	21.02	0.00	0.00
	662	61	4,029	13.83	33.40	-0.15	60,300		5	0	0	26.31	0.00	0.00
	758	211	2,640	13.96	30.05	-1.05	60,400		0	0	0	0.00	0.00	0.00
	9,304	-597	19,525	14.04	26.60	0.10	60,500		121	-1	3	26.31	2981.60	-218.40
	513	-21	1,051	14.23	24.55	0.00	60,600		0	0	0	0.00	0.00	0.00
	619	71	1,368	14.52	23.55	1.15	60,700		0	0	0	0.00	0.00	0.00
	525	-80	1,703	14.46	19.75	-0.65	60,800		0	0	0	0.00	0.00	0.00
	468	-51	698	14.55	17.55	-1.15	60,900		0	0	0	0.00	0.00	0.00
	12,310	-2,151	20,682	14.8	16.65	-0.80	61,000		1,536	-106	187	26.65	3412.55	-281.50
	911	453	1,514	14.91	14.95	-0.80	61,100		0	0	0	0.00	0.00	0.00
	1,175	385	2,050	15.19	14.45	0.25	61,200		0	0	0	0.00	0.00	0.00
	360	14	390	15.1	11.90	-1.50	61,300		0	0	0	0.00	0.00	0.00
	190	18	698	15.68	13.10	0.30	61,400		0	0	0	0.00	0.00	0.00
	5,534	413	10,461	15.72	11.50	0.00	61,500		170	2	5	27.90	3878.55	-290.75
	273	0	715	15.81	10.30	-0.85	61,600		0	0	0	0.00	0.00	0.00
	218	81	555	15.9	9.20	-0.90	61,700		0	0	0	0.00	0.00	0.00
	155	36	494	16.38	9.80	0.55	61,800		0	0	0	0.00	0.00	0.00
	324	35	342	16.65	9.50	0.65	61,900		0	0	0	0.00	0.00	0.00
	14,013	656	11,438	16.68	8.35	-0.10	62,000		2,028	6	93	31.68	4404.55	-274.30
	111	3	340	16.77	7.50	-0.30	62,100		0	0	0	0.00	0.00	0.00
	120	12	325	17.11	7.55	-0.35	62,200		0	0	0	0.00	0.00	0.00
	363	13	351	16.93	6.00	-0.90	62,300		0	0	0	0.00	0.00	0.00
	183	-20	191	17.48	6.70	0.40	62,400		0	0	0	0.00	0.00	0.00
	2,177	-196	1,973	17.59	6.10	-0.10	62,500		48	0	0	29.95	0.00	0.00
	149	-5	97	17.47	5.00	-1.60	62,600		0	0	0	0.00	0.00	0.00
	114	-338	648	17.9	5.30	-1.30	62,700		0	0	0	0.00	0.00	0.00
	147	-8	75	18.08	5.00	-1.70	62,800		0	0	0	0.00	0.00	0.00
	124	-22	100	18.21	4.60	-1.10	62,900		0	0	0	0.00	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.