BERKSHIRE HATHAWAY Class B (BRK.B) implied volatility

Frequently asked questions

What is BRK.B implied volatility?

The annualized volatility the options market is pricing into BERKSHIRE HATHAWAY Class B (BRK.B) options, backed out of their prices. 40% IV means the market expects the stock to move about 40% over a year, or roughly 2.5% on a typical day (40% ÷ √252). Each expiration has its own at-the-money IV; the list of them is the term structure.

What does IV versus realized volatility tell me?

Realized (historical) volatility is what the stock actually did over the last 30 trading days; implied is what options are charging for the next 30. IV above HV is a volatility premium that favors premium sellers; IV well below HV is rare and favors buyers.

What is the 25-delta skew?

The IV of the 25-delta put minus the IV of the 25-delta call on the same expiration. Positive skew (the usual case in stocks) means downside protection is priced richer than upside calls; a widening skew signals demand for hedges.

What does the BRK.B IV chart show?

One year of daily 30-day implied volatility (blue) against 30-day realized volatility (amber), with the 52-week IV high and low marked. When blue sits above amber, options are pricing more movement than BRK.B has delivered; the gap is the premium that option sellers collect.

What is BRK.B's IV rank and how is it different from IV percentile?

IV rank places today's 30-day implied volatility within its own range over the past year: 0 at the 52-week low, 100 at the high. IV percentile is the share of days in that year with lower IV. A single spike drags rank down for months while percentile keeps counting, so read the two together; both come from the daily ATM IV OptionScout stores for BRK.B every session.