--- title: "What is implied volatility | RupeeCase" description: "Implied volatility is the volatility figure that makes an option's model price equal its market price, given the index level, the strike." source_url: "https://www.rupeecase.com/learn/questions/what-is-implied-volatility" --- Nifty's 30 day implied volatility peaked on 30 Mar 2026 and was back in the mid teens by 10 Jun 2026 Constant 30 day at the money implied volatility of Nifty options, daily, from 1 Jul 2025 to 10 Jun 2026. Each point is an annual percentage. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026. The chart shows Nifty's 30 day at the money implied volatility from 1 Jul 2025 to 10 Jun 2026. It peaked on 30 Mar 2026, a day Nifty fell sharply, and by 10 Jun 2026 it was back in the mid teens. The line stops at that date, so every point on it was known by then. Take an option's market price, along with the index, the strike, the time to expiry and the interest rate. Find the volatility that makes the Black 76 model return that price. For NSE index options the model runs on the future, which is the forward price for the expiry. The answer is the implied volatility of that option, found by a short numerical search. Implied volatility is forward looking, because it comes from prices people pay now. Historical volatility is measured from past closes, and comparing the two is covered in the volatility module. Implied volatility is another way to quote an option's price: the movement that price is paying for. It says nothing about direction. On a chain, each traded strike has its own implied volatility, and the at the money reading is the one usually quoted. A strike with no trade has no market price to invert, so the school uses traded strikes only. India VIX is a related number: NSE builds it from the quotes of out of the money Nifty options, and the [India VIX question](/learn/questions/what-is-india-vix) explains how. **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) What is implied volatility?Implied volatility is the volatility figure that makes an option's model price equal its market price, given the index level, the strike, the time to expiry and the interest rate. It is quoted as an annual percentage, so it shows how much movement the option price is paying for, and it does not say which way the index will move. LGo deeper ## Where Learn teaches this. [Go deeperVolatility: historical against implied7 min, Beginner](/learn/path-16/module-16-1-historical-vs-implied-volatility)[Go deeperSolving for implied volatility9 min, Intermediate](/learn/path-16/module-16-3-solving-for-implied-volatility)[Try itIV rank and percentileBoth definitions side by side on a dated series.](/learn/tools/iv-rank-percentile) SSources ## Go to the source. 2 sources, NISM the most cited The publisher of each source listed below. Source: Module undefined source list. 1. [NSE, India VIX white paper (how NSE turns Nifty option quotes into one volatility number)](https://nsearchives.nseindia.com/web/sites/default/files/inline-files/white_paper_IndiaVIX.pdf) NSE 2. [NISM, Series VIII equity derivatives test objectives](https://www.nism.ac.in/revamp-nism/test-objectives-revised-nism-series-viii-equity-derivatives-certification-examination/) NISM ?Questions people ask ## Related questions. [QuestionWhat is India VIX?Beginner](/learn/questions/what-is-india-vix)[QuestionWhat do IV and IVP mean in the option chain?Intermediate](/learn/questions/iv-and-ivp-in-option-chain)[QuestionHistorical, implied and realised volatility: what is the difference?Intermediate](/learn/questions/historical-implied-realised-volatility)[QuestionWhat does a high India VIX mean, and is VIX above 20 dangerous?Beginner, trap check](/learn/questions/high-india-vix-meaning) [All 130 questions](/learn/questions/) Explore next ## Go deeper on this question. * [QuestionHow do I calculate IV for Nifty options?A short answer with a dated chart](/learn/questions/calculate-iv-nifty-options) * [QuestionWhat are the volatility surface, SABR and local volatility?A short answer with a dated chart](/learn/questions/volatility-surface-sabr) * [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. 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