Whenever a trade is initiated, Pods AMM will calculate the current theoretical Black Scholes price considering the updated external information (like spot price and time to maturity) and use this information to quote the total cost of the operation. After quoting the total cost of the operation, the AMM has a new pool condition, an imbalance. This translates into a "new virtual unit price". According to Black Scholes, this virtual price has a corresponding implied volatility. Then, Pods AMM will find and store that implied volatility so it can pass this market information along to the next period.