Located in the Analysis section, the Volatility icon provides users the ability to plot various Implied Volatility (IV) Indexes by maturity, option expiration and delta. Barchart’s IV Index is a measure of a stock’s implied volatility level using “virtual” options expiring at constant maturities (30, 60, 90, 120, 150, 180, 270, 360, and 720 days).

Three sets of IV indexes are calculated: IV Index, IV Index Call and IV Index Put. The IV Index is a composite volatility of a stock calculated by aggregating option implied volatilities. It is a weighted average of the implied volatilities of Near-The-Money options (includes both calls and puts) that straddle constant maturities. The IV Call and IV Put Indexes are weighted averages of the implied volatilities of call and put options available in 5 delta increments from 0.05 to 0.95 for calls -0.05 to -0.95 for puts.

Check out our User Guide to learn how to setup implied volatility indexes, term structure plots, implied volatility curves, risk reversal, skew by delta and butterfly plots.