Decoded Intelligence Signal
Implied Volatility (IV)
advanced
technical_analysis
Verified: May 27, 2026Lexicon Core Definition
The market's expectation of future price volatility derived from options prices; when IV exceeds historical realized volatility, options may be systematically overpriced for volatility insurance reasons, making volatility selling strategies theoretically attractive.
Analysis Breakdown
The market's expectation of future price volatility derived from options prices; when IV exceeds historical realized volatility, options may be systematically overpriced for volatility insurance reasons, making volatility selling strategies theoretically attractive. Full explanation coming soon when Journey 22 content is ingested.