Options Analytics

Implied Volatility Analytics

Smiles and term structure for SPY to spot skew and forward vol shifts.

ATM IV Term Structure

Volatility Skew (25-Delta Risk Reversal)

Call IV - Put IV
Current Regime: Bearish Skew

Typical downside bias. The market is paying a 4.2% premium for puts over calls.

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IV Smile

3D Volatility Surface

Interactive

An interactive 3D map of implied volatility across all strikes and expirations. Rotate and zoom to spot anomalies, kinks, and relative value opportunities in the volatility surface.

Explore the implied volatility surface by analyzing both the smile shape, the evolution of ATM volatility across expirations, and the term structure of market skew.

Understanding Implied Volatility (IV)

What is Implied Volatility?

IV is the market’s forecast of likely price movement. High IV implies larger expected swings (and richer options) while low IV signals calmer expectations.

How to interpret these charts

  • IV Smile: Plots IV versus strike for a single expiry. A smirk highlights demand for protection in fat tails.
  • ATM Term Structure: Shows how near-the-money IV prices forward risk. Contango (rising curve) points to higher long-term uncertainty; backwardation signals nearer-term stress.

Practical applications

  • Gauge whether options are relatively “cheap” or “rich.”
  • Align strategies (skew trades, calendars) with observed smile/term structure shifts.
  • Track sentiment into catalysts like earnings or macro events.