Implied Volatility Charting

Our platform allows you to flexibly chart historical implied volatilities, realized volatilities, and skews across global asset classes in seconds. Our charting tools contain over 10 years of historical data for you to leverage to uncover investment opportunities.

By default, the Implied Volatility tool will show you implied volatility for the three-month expiry plotted against the underlying asset's price. You can customize what is plotted by clicking on the “Edit chart” button. You can add multiple assets to the same plot, plot realized or implied volatilities, or plot implied volatility for varying deltas and maturities. You can also plot differences or ratios between two volatility timeseries to visualize how volatilities have changed relative to one another.

Use Cases

These charts serve many functions. For example, you can quickly contextualize the cheapness or expensiveness of current implied volatility against its history. You can also chart implied volatility against realized volatility to visualize option risk premiums and how they’ve changed over time. Another key example is charting the implied volatility of one asset against another to find the best-priced expression of your trading view. As an example, a rising ratio of implied volatility between the NASDAQ and the S&P 500 would show increased expectations of volatility in the technology sector compared to the broader U.S. market. A put writer on the S&P 500 could use this information to incorporate the NASDAQ into their strategy as well. They could then backtest and optimize those strategies on the Volatility platform.