MarketXLS

Options Implied Volatility

Calculates the implied volatility from an option's market price using the Black-Scholes model.

Parameters

Parameter Type Required Description
CurrentStockPrice number Yes Current underlying stock price
MarketOptionPrice number Yes Current option market price
ExpiryDate date Yes Option expiration date
OptionType string Yes "Call" or "Put"
StrikePrice number Yes Option strike price
RiskFreeRate number No Risk-free rate (default 0.05)

Notes

  • Uses iterative solving to find IV
  • Result is expressed as decimal (0.25 = 25%)

Syntax

=mxls.opt_ImpliedVolatility(CurrentStockPrice, MarketOptionPrice, ExpiryDate, OptionType, StrikePrice, [RiskFreeRate])
Excel Online (Mac & Windows)

Parameters

currentStockPricenumberRequired

Current stock price

marketOptionPricenumberRequired

Current option market price

expiryDatedateRequired

Option expiration date

optionTypestringRequired

Call or Put

strikePricenumberRequired

Option strike price

riskFreeRatenumber

Risk-free rate as decimal

Returns

number

Implied volatility as decimal

Examples

=mxls.opt_ImpliedVolatility(150, 5, DATE(2024,6,21), "Call", 155)
Call IV
=mxls.opt_ImpliedVolatility(150, 3, DATE(2024,6,21), "Put", 145)
Put IV
=mxls.opt_ImpliedVolatility(150, 5, DATE(2024,6,21), "Call", 155, 0.04)
Custom rate

When to Use

  • Options pricing analysis
  • Volatility trading
  • Comparing IVs across strikes
  • Options strategy evaluation

When NOT to Use

Scenario Use Instead
Stock-level IV ImpliedVolatility()
Delta calculation opt_Delta()
Other Greeks opt_Gamma(), opt_Theta(), etc.

Common Issues & FAQ

Why is IV different from historical volatility?

IV is forward-looking (derived from option prices) while HV is backward-looking (calculated from price history).

Excel Templates Using Options Implied Volatility

These ready-made MarketXLS templates call opt_ImpliedVolatility() in their worksheet formulas. Open one to see the function working inside a complete model.

Related Formulas

More MarketXLS Options formulas you can use in the same worksheet:

See opt_ImpliedVolatility used in a complete workbook: Options AI: How Artificial Intelligence Is Transforming Options Trading with Live Data

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MarketXLS Excel Add-in Tutorial - How to Use Options Implied Volatility and Other Financial Formulas
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