Market Volatility %

Market Volatility is the implied volatility1 calculated using the SuperDerivatives' benchmark model. It is displayed in the Results area at the bottom of the pricing page as Market Vol %.

For the Asian family of options (Asian, Asian strategy, Asian strip, Asian strip strategy) the market volatility result incorporates all the volatilities and correlations of the futures involved in the underlying swap. For strips, this value is the weighted volatility of all the strip's volatilities.

 
For vanilla strategy options, market volatility is displayed for both strikes where relevant, i.e., where both strikes are not the same.
For vanilla options, vanilla strategies, vanilla strip options, vanilla strip strategies, Asian options, Asian strategies, Asian strip options, and Asian strip strategies, you can enter your own bid/ask for the market volatility value. When you then calculate the instrument, SDX Commodities & Energy calculates the other results (such as the Price per Brl and Market Premium) based on your own market volatility value instead of using SD's volatility surface. This lets you add a premium to an option by adjusting the volatility, instead of adjusting the price directly