Volatility User Guide

Volatility User Guide

  • User Guide
  • Video Tour
  • Get Started

›Options Charting

Getting Started

  • Overview
  • Creating Your Account

Options Backtesting

  • Starting Your Backtest
  • Customizing Your Strategy

    • Profit Targets and Stop Losses
    • Implied Volatility Conditions
    • Options Price Conditions
    • Timing and Date Range
    • Holding Periods
    • Technical Indicators
    • Execution and Liquidity Costs
    • Pair with Underlying Shares
    • Earnings Announcements
    • Delta Hedging

    Analyzing Your Results

    • Backtesting Statistics
    • Backtesting Charts
    • Scenario Risk Analysis
    • Strategy Optimization
  • Portfolio Backtesting
  • Backtest Specific Options

Market Screening

  • Volatility Dashboard
  • Macro and Equities Screens
  • Put Writing Screen
  • Covered Call Screen
  • Unusual Options Activity
  • Opportunities Search
  • Correlation Analysis

Options Charting

  • Implied Volatility Charting
  • Volatility Skew Charting
  • Volatility Surface Charting
  • Market Positioning Charting
  • Put/Call Volume Charting

Account Management

  • Settings
  • Transactions
  • Password

Miscellaneous

  • Start Bar

Volatility Skew Charting

The Volatility Skew (also called "Smile") chart displays implied volatilities by strike price for different maturity dates. The smile shape that usually occurs in this data results from higher implied volatilities being priced into out-of-the-money options due to the asset’s gap risk. This chart can help you pinpoint which strike and maturity to trade by identifying areas of low or high implied volatility depending on your strategy.

You can modify this chart to plot different maturities on historical dates by clicking the “Edit chart” button.

Implied Volatility Skew Chart Screenshot

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