Why does different strike price have different IV?
Is it because of different OI at different strike price?
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Implied volatility is directly influenced by the supply and demand of the underlying options and by the market’s expectation of the share price’s direction. Since at different strike prices there is different demand and supply and also depends if the option is ITM OTM or ATM.
Ya, I understood it after watching Derivatives wala lecture. Thank you for your help.