Implied Volatility is the market's expectation of volatility. Given the price of an option we can solve for the expected volatility of the underlying asset. Formally, implied volatility (IV) is the one standard deviation range of expected movement of an asset’s price over the course of a year. Viewing At-The-Money (ATM) IV over time gives a normalized view of volatility expectations which will often rise and fall with realized volatility and market sentiment. This metric shows the ATM implied volatility for options contracts that expire 3 months from today.

This is the Point-in-Time (PiT) variant of Options ATM Implied Volatility (3 Months). PiT metrics are strictly append-only and their history is immutable. The historic data does not necessarily reflect the best current knowledge, but the information at the time when a data point was first computed. PiT metrics are ideal candidates for applications in model backtesting and related quantitative purposes. Read our article on PiT metrics for more information.