$526.32
−$2.98 (−0.56%)
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. MSFT options expiring Oct 14 carry 22.2% IV at the money. That points to a typical daily move of about ±$7.36 (1.4%).
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 3% below today's price carry 24% IV and calls 3% above carry 22%, close to the 22% 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 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 22% volatility. Over the last 20 trading days, the stock actually swung at a 21% yearly rate (38% over 60 days). Options are pricing about as much movement as the stock has actually had.
The curve slopes upward, from 22% for Oct 14 to 34% for Jan 19, 2029. This is the calm, normal shape. More time leaves more room for surprises, so longer-dated options carry more volatility.