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18 Sep 2026

Options, volatility and the probability of outcomes.

How implied volatility and time to expiry shape the range of outcomes an index option is priced for.

Read the full insightIllustrative article

How wide is the range? Index level at expiry, 30 days out

Computed from a lognormal model at three implied volatilities. Illustrative, not market data.

  • 10% implied volatility · 92% within ±5%
  • 15% implied volatility · 76% within ±5%
  • 20% implied volatility · 62% within ±5%
±5% OF TODAY'S LEVEL−15%−10%−5%0+5%+10%+15%Change in index level at expiry
View data table
Probability of finishing within a range, by implied volatility
Implied volatilityOne standard deviationWithin ±5%Within ±10%
10%±2.9%91.9%99.9%
15%±4.3%75.5%98.0%
20%±5.7%61.7%91.9%

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Options volatility surface (illustrative)

Implied volatility across strikes and expiries

An illustrative surface: higher implied volatility for strikes below the index level, a smile that flattens as expiry lengthens. Not market data.

10%20%30%Implied volatility80%90%100%110%120%Strike, % of index level7d14d30d45d60d90dDays to expiry
View data table
Illustrative implied volatility by strike and days to expiry
Days to expiry80% strike90% strike100% strike110% strike120% strike
7 days31.2%19.6%13.6%11.7%13.0%
14 days26.2%18.0%13.8%12.5%13.4%
30 days22.7%17.1%14.2%13.3%13.9%
45 days21.4%16.8%14.4%13.7%14.2%
60 days20.6%16.7%14.6%14.0%14.4%
90 days19.9%16.7%15.0%14.5%14.8%

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