The best way to use IV to determine relative pricing of options is to view a historical chart of a stocka#39;s IV and then analyze where ... With a value of 35%, GOOGa#39;s IV is trading close to the yearly low (28%), which is also visually evident in the IV historical chart. ... Remember that using IV in this way is simply to get a sense of relative pricing, not to make a prediction of where GOOG is going to go in the future.
|Title||:||The Option Trader Handbook|
|Author||:||George Jabbour, Philip H. Budwick|
|Publisher||:||John Wiley & Sons - 2010-01-06|