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IV Skew

The difference in implied volatility across strikes at the same expiration. Most equity index options exhibit a put-side skew — out-of-the-money puts price at higher IV than equivalent calls.

Also known as:volatility skewput skewsmileiv smirk

IV skew is the cross-sectional shape of implied volatility across strikes for a given expiration. In equity index options the typical shape is a downward-sloping smirk: out-of-the-money puts carry the highest IV, at-the-money options the lowest, and out-of-the-money calls somewhere in between. The skew reflects the market's collective demand for crash protection.

How traders use it

A steepening skew without a corresponding move in the underlying is a classic warning sign — institutions are paying up for tail protection. A flattening skew during a selloff often marks capitulation. ChartGEX surfaces the skew as part of the volatility-surface view and tracks side-aware troughs (see IV trough depth) for dealer-positioning signals.

Related Terms

IV Rank

A normalized measure of where current implied volatility sits within its 52-week range. IV Rank = (IV − IV_low) / (IV_high − IV_low).

Volatility Surface

The four-dimensional function describing implied volatility across strikes and expirations. Used to identify mispricings, dealer positioning signatures, and regime changes.

Vanna

The second-order Greek that measures how an option's delta changes when implied volatility changes. ∂Δ/∂σ. Drives slow grinds, pre-event drifts, and IV-collapse rallies.

Volatility Regime

A discrete classification of the current volatility environment. ChartGEX classifies low (< 10% realized), medium (10–30%), and high (> 30%) and conditions dealer-structure thresholds accordingly.