$255.72
−$0.58 (−0.22%)
52-week range
Implied volatility (IV) is the size of the moves that option prices assume, stated as a yearly percentage. Think of it as the weather forecast built into the option price. AMZN options expiring Oct 14 carry 26.3% IV at the money. That points to a typical daily move of about ±$4.23 (1.7%).
Each strike has its own IV. Plotted together they make a curve called the smile. When one side sits higher than the other, that tilt is called skew.
Puts 4% below today's price carry 29% IV. At the money it is 26%, and calls 4% above carry 25%. Traders are paying extra for protection against a fall.
Term structure is the at-the-money IV for each expiry date, from the nearest to the furthest. The circled point is the Oct 14 expiry you picked.
Realised volatility is the weather that actually happened: how much the stock really moved, on the same yearly scale. Comparing it with IV shows whether options look expensive or cheap.
Options price in 26% volatility. Over the last 20 trading days, the stock actually swung at a 22% yearly rate (40% over 60 days). Options are pricing more movement than the stock has actually had. Some extra is normal: it's what option sellers get paid for taking the risk.
The curve slopes upward, from 26% for Oct 14 to 38% for Jan 19, 2029. This is the calm, normal shape. More time leaves more room for surprises, so longer-dated options carry more volatility. There's a bump at Oct 30 (40%), the first expiry after earnings on Oct 29. Options that span a scheduled event, such as earnings, cost more.