Published Jul 19, 2026, 8:00 PM ET · Updated 4 months ago · 1 source
Implied Volatility Calculations Unreliable with Wide Bid-Ask Spreads
Youtube
·
Original Report
Implied volatility calculations should not be trusted when bid-ask spreads are wide, particularly in pre-market or low-volume scenarios, because these calculations are based on the mid-price of options, and poor liquidity leads to less reliable quotes and potential for fills far from the desired price.