Description
Actual Implied is the calculated At-the-money implied volatility given the various strike prices. Call and put implied gives the current market implied volatility for each individual contract using the mid price.
Opinion
All of the contracts are overpriced on a per volatility basis. The term-structure implied vol is not even calculable by tradition methods. This is certainly the retail investor buzz. I would say go short vol.
*DISCLAIMER: THIS IS THE OPINION OF THE WRITER AND NOT A RECOMMENDATION OR OFFER OF SERVICE OF ANY KIND TO THE READER. IT SERVES AS AN EDUCATIONAL TOOL ONLY*
Purpose
Allows the investor to see what option contracts are missed priced due to implied volatility. Knowing this, the investor can make a delta neutral trade that is either Long or Short volatility. As the volatility begins to correct itself, regardless of underlying movement, the trade will become profitable as long as the overall position remains delta neutral.