Implied Volatility [Contract] defines the individual contract's or spread's implied volatility. Implied volatility at a contract level is the volatility implied for the future by the contract's current pricing.
Traders should distinguish between the underlying implied volatility (a VIX-like implied volatility average) and the contract/spread level implied volatility. A normal behavior is to see higher implied volatility than the average as the contracts go further out of the money (OTM) and lower implied volatilities at or in the money (ATM or ITM).
