Implied volatility(redirected from IV)
Also found in: Dictionary, Thesaurus, Medical, Acronyms, Encyclopedia, Wikipedia.
An estimation of the volatility of a stock as calculated by the price of an option on that stock. The factors used in determining a stock's implied volatility are the maturity date, exercise price, and riskless rate of return. One of the most common models used in estimating implied volatility is the Black-Scholes Option Pricing Model.