--- title: "How do I calculate IV for Nifty options | RupeeCase" description: "You find the implied volatility by taking an option's settle price, the future, the strike, the time to expiry and the rate." source_url: "https://www.rupeecase.com/learn/questions/calculate-iv-nifty-options" --- Implied volatility is higher on the strikes far below the future, so the smile leans on the 30 Jun 2026 expiry Implied volatility of each traded NIFTY strike on the 10 Jun 2026 chain for the 30 Jun 2026 expiry, within eight percent of the future. Each strike is inverted from its settle price with Black 76. Strikes with no trade are left out. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026. Start from a dated chain. Take a strike that traded, its settle price, the future for the expiry, the strike itself, the days to expiry and the rate on that date. Those five inputs are all the solver needs. The output is an annual volatility, quoted as a percentage. The model is Black 76, Black's version from 1976 for options on a forward. It prices a call as the discounted expected payoff under a lognormal future. Volatility is the one input you cannot read off the market, so the solver searches. It starts from a guess, computes the model price, compares it with the settle price, and moves the guess until the two agree. A Newton step does most of the work, and a bisection fallback takes over when the Newton step runs away. Three checks keep the answer honest. The price must be above intrinsic value, or no volatility will reproduce it. The strike must have traded, because an untraded strike's settle comes from the exchange's own model, so inverting it returns that model's volatility, not one the market paid. And the expiry time must be right: counting to the close, not the open, moves the answer for the short dated expiries. The chart shows the implied volatility of each traded strike on the 10 Jun 2026 chain for the 30 Jun 2026 expiry. It is a smile. The strikes far below the future carry higher implied volatility than those near it, so the curve leans rather than sitting flat. The far upside rises a little too, which makes it a smile with a tilt. The IV solver tool runs this search. Put in a settle price and it returns the volatility, so you can check a hand calculation against it. **Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) How do I calculate IV for Nifty options?You find the implied volatility by taking an option's settle price, the future, the strike, the time to expiry and the rate, then solving the Black 76 model for the volatility that returns that price, usually with a numerical search. Use the future for NSE index options, count time in calendar days over a year of 365 days, and use only strikes that traded, because a strike with no trade has no market price to invert. LGo deeper ## Where Learn teaches this. [Go deeperSolving for implied volatility9 min, Intermediate](/learn/path-16/module-16-3-solving-for-implied-volatility)[Go deeperVolatility: historical against implied7 min, Beginner](/learn/path-16/module-16-1-historical-vs-implied-volatility)[Try itIV solverThe implied volatility behind a dated settlement price.](/learn/tools/iv-solver) SSources ## Go to the source. 3 sources, NSE the most cited The publisher of each source listed below. Source: Module undefined source list. 1. [NSE, option chain (the live screen; the school uses dated end of day chains instead)](https://www.nseindia.com/option-chain) NSE 2. [NSE, equity derivatives contract specifications: European exercise, cash settlement and lot sizes](https://www.nseindia.com/static/products-services/equity-derivatives-contract-specifications) NSE 3. [Black (1976), The pricing of commodity contracts, Journal of Financial Economics](https://ideas.repec.org/a/eee/jfinec/v3y1976i1-2p167-179.html) Paper ?Questions people ask ## Related questions. [QuestionWhat is implied volatility?Beginner](/learn/questions/what-is-implied-volatility)[QuestionHow is an option price calculated?Intermediate](/learn/questions/how-option-price-is-calculated)[QuestionWhat are option Greeks (Greeks kya hai)?Beginner](/learn/questions/what-are-option-greeks) [All 130 questions](/learn/questions/) Explore next ## Go deeper on this question. * [QuestionHistorical, implied and realised volatility: what is the difference?A short answer with a dated chart](/learn/questions/historical-implied-realised-volatility) * [ToolOption payoff builderLegs on a dated Nifty chain, breakevens and charges](/learn/tools/payoff-builder) * [GlossaryInvesting glossary, 230 termsPlain word definitions, and the app’s own](/learn/glossary) Community ## Join my WhatsApp group. Scan the code, fillFill one short form, and join my WhatsApp group. Slides, sources, factsheets and the rebalance logs live there, and members join a daily Google Meet with me. New to RupeeCase? [Getting started](/getting-started) [See the terminal](/terminal) [Sign up for RupeeCase](https://invest.rupeecase.com/signup) [Join the WhatsApp group](https://forms.gle/C6HMtM1Z2GfeocQV7) [One form, one group](https://forms.gle/C6HMtM1Z2GfeocQV7)Scan with your phone camera Education only, not investment advice, a research report or a recommendation to buy, sell or hold any security. RupeeCase (QC Alpha Technologies Pvt Ltd) is not registered with SEBI as an investment adviser or research analyst. Contracts and prices shown are for illustration only, come from NSE end of day files at least 30 days old, and are not recommendatory. Derivatives trading carries a high risk of loss.