Financial Risk Management (FRM): Excel & Python Course - Option Implied Volatility Explained + How to Calculate It in Excel

Learn what option implied volatility is and why it matters for option pricing and risk management. In this video, Ryan O'Connell, CFA, FRM, explains the Black-Scholes option pricing model inputs and shows how to calculate implied volatility in Excel using Solver. Follow along as we define implied volatility, break down the model inputs, and perform a live calculation in Excel. Perfect for traders, investors, and finance students looking to apply these concepts in practice. 🎓 *This Video Is Part of My Full Options Trading Course:* Go deeper with step-by-step lessons, paper trading practice, and downloadable resources. 👉 https://ryano.finance/options-course 📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options Chapters: 0:00 - Definition of Implied Volatility 0:54 - Black Scholes Option Pricing Model Inputs 3:31 - Calculating Implied Volatility in Excel *Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.