Looking at the real life pricing for options on SPY. Using options price calculators, it seems the market does not take the implied volatility as gospel when it comes to pricing.
Current IV on SP500 is 12.1. However when I put 15 as the IV within the option price calculator, the price becomes more consistent with the bid-ask price in the market.
Seems no way anyone would sell a put option using 10 as the IV to calculate a price to sell for. Yet the IV on the SP500 often finds itself around 10
Posted by wolfwolf6