Implied volatility is often a major concern of traders, and it is often the most difficult thing to calculate. Recall that the implied volatility of an option is the volatility that is being implied by the market at this instant in time. That is, it is merely the volatility that one would have to plug into a model in order for the model to yield a result equal to the option's current market price.

The charts in this book can be used to locate the general level of the implied volatility of any option. Each page of the booklet displays a chart for calls and a chart for puts. The put and call values on each page are for a specific time to expiration and for a specific short-term interest rate. Included in the booklet are 12 charts — representing differing times to expiration — for each of two interest rates. The charts on which the interest rate is 0% are to be used for futures options. The other charts are for index and equity options.