Definitions for "implied volatility"
A theoretical value designed to represent the volatility of the security underlying...
Volatility of an underlying asset, as measured from the price of derivatives assuming a standard pricing model.
The value for volatility embedded in the market price of an option. The market price of the option is used to derive the level of volatility implied in it. This represents the markets best estimate of future volatility, and can be compared with historical volatility to determine whether this view has changed.