According to BlockBeats, the BitVol index, a measure of expected implied volatility derived from tradable Bitcoin options prices, has risen to 52.7, marking a daily increase of 4.42%. The index was launched by financial index company T3 Index in collaboration with options trading platform LedgerX.
The implied volatility is the volatility implied by the actual options price. It is calculated using the B-S options pricing formula, where the actual price of the option and all other parameters except volatility (σ) are substituted into the formula to derive the volatility.
The actual price of an option is formed by competition among many options traders. Therefore, the implied volatility represents the market participants' views and expectations for the future of the market, and is considered to be the closest to the real volatility at that time.