--- title: "IV Solver: Implied Volatility from a Price | RupeeCase" description: "Free implied volatility solver on dated NSE Nifty chains: type an option price, get the Black 76 IV, and see the smile of the whole chain." source_url: "https://www.rupeecase.com/learn/tools/iv-solver" --- * Implied volatility**15.09 vol points**the volatility that gives this price * Price you entered**Rs 321.65**a unit, Rs 20,907 for a lot of 65 units * Intrinsic value**Rs 0.00**time value Rs 321.65 * Vega**Rs 21.64**a unit for one vol point **Nifty 23,250 call, 20 days to expiry.** Pricing the option at 15.09 vol points with Black 76 gives Rs 321.65, the price you entered. One vol point is worth about Rs 21.64 on this option, so one rupee of premium is about 0.05 vol points. This is the settlement price of the example, and the solved volatility is the one printed in the chain table (15.09 vol points). The smile of the 30 Jun 2026 expiry: 15.0 vol points at the money Implied volatility of the out of the money option at each strike (puts below the forward, calls above), solved from the NSE settlement prices of 10 Jun 2026. Source: NSE end of day settlement prices, Black 76 computed by RupeeCase. As of 10 Jun 2026.Model, not market data The price rises with volatility, so one volatility fits one price The solver finds where the price curve meets the price you entered. Inputs: 23,250 call, forward 23,240.10, 20 days to expiry, rate 5.11%, price Rs 321.65. Source: RupeeCase model, Black 76. As of 10 Jun 2026. Strikes around 23,250 | Strike | Call Rs | Call IV | Put Rs | Put IV | | --- | --- | --- | --- | --- | | 23,050 | 437.55 | 15.51 | 239.25 | 15.09 | | 23,100 | 405.90 | 15.36 | 258.10 | 14.98 | | 23,150 | 374.55 | 15.17 | 278.95 | 14.90 | | 23,200 | 347.70 | 15.14 | 300.60 | 14.81 | | 23,250 | 321.65 | 15.09 | 322.05 | 14.65 | | 23,300 | 294.60 | 14.93 | 347.65 | 14.62 | | 23,350 | 272.55 | 14.95 | 371.80 | 14.47 | | 23,400 | 248.10 | 14.81 | 398.75 | 14.39 | | 23,450 | 226.65 | 14.74 | 426.80 | 14.31 | Black 76 on the forward: European, cash settled, the discount factor at the rate shown. The solver is Newton with a bisection fallback on 0.5 to 500 vol points. The volatility is the market's price for this one strike and date, not a forecast of what the index will do. Example data from NSE end of day settlement prices, as of the date of the example you pick. Not live, not a recommendation, and there is no order button: this page cannot trade. ## How to read it ### Start from the example Each example is an NSE end of day file at least 30 days old, dated on the page. The box opens with the settlement price of the strike you pick, and the solver returns the volatility printed in the chain table. ### Type a price of your own The solver looks for the one volatility at which the Black 76 price equals your price. A price below intrinsic value, or at or above the most an option can be worth, has no answer, and the page says so instead of guessing. ### Read the two charts The curve shows the option price for each volatility, rising smoothly, so one price fits one volatility. The smile shows the solved volatility of the out of the money option at every strike of the chain, puts below the forward and calls above. ### Why the smile is not flat One volatility per expiry would give a flat line. Index puts usually cost more than the model with a single volatility says, and the smile shows it. [The solving for implied volatility module](/learn/path-16/module-16-3-solving-for-implied-volatility) walks through the method, and [the historical against implied volatility module](/learn/path-16/module-16-1-historical-vs-implied-volatility) says what the number is a measure of. ## What it leaves out Implied volatility is the market's price for one strike and one date, expressed as a volatility, not a forecast of what the index will do. The settlement price of a strike that did not trade is set by NSE with its own model, so the volatility of a far strike mostly reflects that rule. The rate is a T-bill yield taken as the risk free rate, and the model prices European options on the forward; the page never shows live prices. ## Go to the source 1. [NSE, equity derivatives contract specifications: European exercise, cash settlement and lot sizes](https://www.nseindia.com/static/products-services/equity-derivatives-contract-specifications) 2. [FBIL, benchmark T-bill yields behind the rate input](https://www.fbil.org.in/) What is implied volatility?The volatility that, put into a pricing model, gives the price the option actually has. It is read from the price, not forecast from the index. Why does a far strike have such a high or odd volatility?Far strikes trade rarely, and NSE sets the settlement price of an untraded strike with its own model. A price like that carries less information than a traded price at a nearer strike. Does the solver need a starting guess?No. It brackets the answer between 0.5 and 500 vol points, uses Newton steps on vega, and falls back to halving the bracket if a step leaves it. LLearn it in depth [Module 16.3Solving for implied volatilityIntermediate, Path 16](/learn/path-16/module-16-3-solving-for-implied-volatility)[ToolPayoff builderLegs from a dated chain](/learn/tools/payoff-builder)[Pillar guideDerivatives and QuantPaths 12 to 19](/learn/derivatives) Explore next ## Learn the idea behind the numbers. * [CalculatorGreeks calculatorDelta to rho, and vanna to colour in expert mode, from one Black 76 engine.](/learn/tools/greeks-calculator) * [QuestionsQuestions on futures and optionsShort answers, each with a dated chart](/learn/questions/) * [Free module 16.3Solving for implied volatility9 min read](/learn/path-16/module-16-3-solving-for-implied-volatility) * [ToolOption payoff builderLegs on a dated Nifty chain, breakevens and charges](/learn/tools/payoff-builder) * [PillarDerivatives and QuantFutures, options, Greeks and more, from dated NSE data](/learn/derivatives) * [ToolsAll 28 free calculatorsReturns, costs, risk, tax and goals](/learn/tools) 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.