Limitations of Implied Volatility
While implied volatility is a powerful tool, it's essential to remember its limitations:
• Not a Direct Price Forecast: Implied volatility reflects the expected magnitude of price swings, not the direction. High IV doesn't necessarily mean the price will go up or down significantly, only that the market anticipates a larger move than when IV is low.... https://topcollegesadmission.in/college-list/diploma/pune