How IV is obtained
An option quote contains a price. An implied-volatility solver finds the volatility input that makes a pricing model produce that price. For a Black-Scholes-style model, the inputs include spot, strike, time to expiry, interest rate, and volatility. The resulting IV is a way to compare option prices across strikes and expiries.
IV is usually quoted as an annualized percentage. A 60% annualized IV does not mean that the asset will move exactly 60% in a year. It describes the volatility level embedded in the option price under the model and convention being used.
IV versus realized volatility
Realized volatility describes price movement that has already happened over a chosen window. Implied volatility describes the volatility level priced into current options. Traders often compare the two, but the comparison must use compatible horizons, timestamps, and annualization conventions.
Interpretation: IV above realized volatility can indicate that options are pricing more uncertainty than the recent path showed. It is not, by itself, proof that options are overpriced.
Read the surface, not one number
IV changes by expiry and strike. The term structure shows how the market prices near-term versus longer-term uncertainty. The skew shows how prices differ between downside and upside strikes. A volatility surface lets you see these dimensions together.
Use IVExplorer
IVExplorer provides live BTC and ETH option views, Greeks, strike and delta surfaces, SVI smoothing, and a local volatility outlook. It keeps the calculation path in the browser and shows freshness and data limitations explicitly.