I'm looking for Python libraries or formulas to compute Implied Volatility (IV) for a stock. Most of the web searches indicate that IV is related to an option contract.
Can you explain if and how implied volatility for a stock is computed, and how it is different from the implied volatility for an option contract.
My client is looking at the screen below from "Options Alpha" and he wants me, as a developer, to compute that number. We've been using PolygonIO, and they have IV for an option contract, but not for a stock by itself. I'm trying to determine first, if it is a logical request, then secondly how to go about it.
I also found this page on OptionsAlpha site, but still trying to make sense out of it: https://optionalpha.com/podcast/understand-how-implied-volatility-works
But the screen shot below does not reference any options contract, it seems to have an IV per the stock.
Instructions like this that tell you how to compute IV always seem to reference an option contract: https://www.wallstreetmojo.com/implied-volatility-formula/
This looks promising - using "Average True Range": https://www.youtube.com/watch?v=KJgvIlBJeYg