Implied volatility (IV) is a measure used in options trading that reflects the market's expectations for a stock's future volatility. In simple terms, implied volatility indicates how much the market thinks a stock price will fluctuate over a specific period.

Higher implied volatility suggests that the market anticipates significant price swings, while lower implied volatility indicates expectations of relatively stable prices.

This video will cover the basics of implied volatility, allowing you to incorporate this crucially important concept into your options trading strategy.

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Huge thanks to Gavin McMaster, the founder of Options Trading IQ, for creating this video on our behalf. If you want to learn more about Options Trading IQ, visit their website at: https://optionstradingiq.com/. You can also follow Gavin McMaster on Twitter @OptiontradinIQ.