Implied Volatility 1 Year

Returns the 1-year (12-month) implied volatility for a given stock symbol. Implied volatility represents the market's expectation of future price movement over the next year, derived from options prices.

Understanding IV

Implied volatility is expressed as a decimal:

  • 0.20 = 20% annual expected movement
  • 0.50 = 50% annual expected movement
  • Higher IV = more expensive options premiums

Parameters

Parameter Required Description
Symbol Yes Stock ticker symbol (e.g., AAPL, TSLA)
StartDate No Historical date for IV lookup

Notes

  • Returns current IV if no date specified
  • 1-year IV is useful for LEAPS and long-term options strategies
  • Compare with shorter-term IV to identify term structure patterns

Examples

=ImpliedVolatility1y("AAPL")
Current 1-year IV for Apple
=ImpliedVolatility1y("TSLA")
Current 1-year IV for Tesla
=ImpliedVolatility1y("SPY")
Current 1-year IV for S&P 500 ETF
=ImpliedVolatility1y("AAPL", DATE(2024,6,15))
Historical 1-year IV on date
=ImpliedVolatility1y("AAPL", "2024-06-15")
Historical IV using string date
=ImpliedVolatility1y(A1)
Symbol from cell reference

When to Use

  • Evaluating LEAPS (long-term options) pricing
  • Analyzing long-term volatility expectations
  • Comparing long-term vs short-term IV (term structure)
  • Options strategy planning for multi-month positions
  • Risk assessment for long-dated options

When NOT to Use

Scenario Use Instead
Need 30-day IV ImpliedVolatility30d()
Need 60-day IV ImpliedVolatility60d()
Need 90-day IV ImpliedVolatility90d()
Need 6-month IV ImpliedVolatility6m()
Need IV excluding earnings ExEarningsImpliedVolatility1y()
Need IV rank ImpliedVolatilityRank1y()

Common Issues & FAQ

Q: Why is 1-year IV different from 30-day IV? A: Options markets often price different timeframes with different volatility expectations. This is called "term structure." Longer-term IV typically differs due to:

  • Mean reversion expectations
  • Upcoming events (earnings, elections)
  • Market uncertainty about the future

Q: How do I convert IV to expected price range? A: For 1-year IV:

  • Expected range = Stock Price * IV
  • Example: $100 stock with 0.30 IV = $70-$130 range (68% probability)

Q: Why am I getting "NA"? A: Check that:

  • The symbol has liquid options trading
  • For historical dates, options data was available on that date

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