Skip to main content

What Does a High IV Suggest about Market Sentiment?

A high Implied Volatility (IV) suggests that the market expects large price swings in the underlying asset, reflecting a high degree of uncertainty or fear. This is often associated with significant upcoming events, earnings announcements, or periods of high market stress.

Conversely, low IV suggests market complacency or an expectation of stable price movement.

What Role Does Market Sentiment Play in the Perceived Opportunity Cost?
In Options Terms, How Is the Uncertainty of a Hard Fork Similar to Implied Volatility?
How Can the Slope of the Futures Curve Be Used to Gauge Market Sentiment?
How Does the VIX Index Relate to Crypto Implied Volatility?