$277.45
−$3.89 (−1.38%)
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. IWM options expiring Oct 13 carry 15.9% IV at the money. That points to a typical daily move of about ±$2.79 (1.0%).
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.
The curve is fairly flat. Puts 2% below today's price carry 17% IV and calls 2% above carry 15%, close to the 16% at the money. The market isn't charging much extra for either direction.
Term structure is the at-the-money IV for each expiry date, from the nearest to the furthest. The circled point is the Oct 13 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 16% volatility. Over the last 20 trading days, the stock actually swung at a 12% yearly rate (13% 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 16% for Oct 13 to 24% for Jan 19, 2029. This is the calm, normal shape. More time leaves more room for surprises, so longer-dated options carry more volatility.