$238.63
−$0.61 (−0.25%)
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. NVDA options expiring Oct 14 carry 25.8% IV at the money. That points to a typical daily move of about ±$3.87 (1.6%).
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 31% IV. At the money it is 26%, and calls 4% above carry 23%. 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 24% yearly rate (36% over 60 days). Options are pricing about as much movement as the stock has actually had.
The curve slopes upward, from 26% for Oct 14 to 40% for Jan 19, 2029. This is the calm, normal shape. More time leaves more room for surprises, so longer-dated options carry more volatility.