A measurement of the market's expected price range and variation for the underlying commodity futures based on market traded options premiums. It is the volatility figure that must be fed into the Black-Scholes formula in order to return a theoretical value equal to the market price for European put and call options. It can be roughly described as the estimated future volatility of the underlying, until maturity, implied by the price of the option. In some markets, options prices are quoted in terms of their implied volatilities rather than their prices.