OPTIONS IV SKEW

I’ve been posting a lot about my IV skew options indexes and now i just want to show you in the most simple way how they’re derived and how to read them.

This is the volatility surface of the S&P 500 FUTURES (ES) as of today, in this chart you can see wherever the IV rises (liquidity) based on moneyness (the term to describe if an option is OTM/ATM/ITM)…