IV Question

[cashclay]

What is considered high IV? I am looking at GTT and the IV is at 385%. Is this considered high or is value of it relative to other price IVs?

 

[ffs1001]

This is the IV chart for GTT for the last couple of months. Maybe this helps you decide whether the current IV is high or not.

 

[El OchoCinco]

As pointed out IV is not absolutely high or low, it is high or low relative to where IV for a stock's options has been over the past month or year depending on what time frame you want to look back at.

 

[guru]

It’s rare to see IV over 300 on any options. This is similar to AMC’s and GME’s IV at their peaks of disarray.

 

[ajacobson]

@guru's point of disarray is pretty critical in judging IV because it is a backsolve value huge numbers point to a market in disarray and it's one of the key conditions to have workable models.
The fact that I can solve for doesn't make it relevant. If you dig down into the original works on option pricing volatility is discussed as a cost of hedging.