# What does implied volatility means for different call and put strike prices?

Why there different implied volatility for different strike prices?, Can plz someone explain to me? I am pretty new to options. Thanks in advance

• Search for the keyword "volatility smile" and you'll find tons of explanations. For example: en.wikipedia.org/wiki/Volatility_smile. In your above screenshot however, I have to say that the implied vols look rather erratic. – LocalVolatility Sep 11 '16 at 22:11
• Some of your options have volume of literally 1 contract. It is not clear when that single trade occurred, but it might be many hours old, which could lead to inconsistent IVs when using more current data the underlying. Also note the big bid ask spreads – Alex C Sep 12 '16 at 1:22

What we call implied volatility is just the number you have to input as $\sigma$ in the Black Scholes equation to get the price which is traded in the market.