Nifty 50 (NIFTY50) ATM Implied Volatility (IV)

24,536.60+576.00 (2.40%)

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The Nifty 50 (NIFTY50) ATM implied volatility for the 9 Nov expiry is 15.9% at 3:35 PM, up from 14.6% at 9:15 AM. On 5 Nov it has ranged from 13.2% at 12:55 PM to 15.9% at 3:35 PM.

  • Price
  • ATM IV

Expiry 09 Nov

13.214.014.515.015.515.915.9
02:55 PM4 Nov03:35 PM5 Nov

FAQs

What is implied volatility (IV)?
Implied volatility is the volatility the market is pricing into an option, worked back from the option's premium. It is shown as an annual percentage. Higher IV means the market expects larger price swings and options cost more.
What does ATM IV mean, and why track it?
ATM IV is the implied volatility of the at-the-money option, the strike nearest the current price of the underlying. At-the-money options are usually the most traded, so their IV is a clean, widely used read of the volatility priced into an expiry.
How does implied volatility affect option premiums?
Higher IV raises both Call and Put premiums and lower IV reduces them, even if the underlying does not move.
How is ATM IV different from India VIX?
India VIX is a 30-day volatility index built from NIFTY options across strikes. ATM IV is the implied volatility of one at-the-money strike on one expiry of the underlying you pick, so it reacts faster to near-term events.
How is implied volatility different from historical volatility?
Historical volatility measures how much the underlying actually moved over a past period. Implied volatility is forward-looking: it is the movement the market is pricing in now. The two can differ widely, especially before events.
Why does ATM IV change during the day?
ATM IV rises when traders pay more for options, for example ahead of results, policy announcements or other events. It falls when demand for options eases or the uncertainty passes. It also shifts as the at-the-money strike changes with the underlying's price.
What is IV crush?
IV crush is a sharp fall in implied volatility right after an expected event, such as a results announcement. Once the uncertainty is resolved, option premiums drop, even if the underlying's price barely moves.