Option Pricing for New Series of options


Hi All ,
Whenever a new series of option is introduce , How does option writer decide what IV to use for writing ATM/OTM options ?

   unconvincing answer:
  1. IV is reverse calculated using black schole calculator and option price , So price comes first and IV is derived from it .

Any other answer welcome.



I think @Sensibull can answer your question.

By the way, are you trying to write an algorithm that involves IV?