Skew Chart

The Skew Chart allows the user to identify option volatility skews in a line graph view to display Implied Volatility across various strikes.  This view quickly shows the user Volatility smiles and frowns.   Critical for traders who use option strategies such as Vertical Spreads and require volatility to be low on the long side and high on the selling side.  Also useful when creating calendar spreads.

Strike or Time Skew Features:

  • Display multiple expirations
  • Strike or Time view types
  • Ability to increase or decrease number of strikes shown
  • Filter out either Puts or Calls
  • Display for Volatility, Delta or Theta

Skew Chart Volatility Smile

The Option Skew tools general purpose is to provide the Option Trader a visual display of an options prices Implied Volatility so they can compare the values across the range of strike prices in a specific expiration period.

A Skew Smile indicates low volatility on the at the money (ATM) strikes and high volatility on the out of the money (OTM) strikes. This pattern is optimal for use in Bull Call Spreads.

You can display any expirations or have as many as eight different expirations at the same time.

You can also add or remove strikes, show calls, puts or both.

One of the very unique tool is the Matrix scanner. There are custom scans that will display a list of all stock symbols that have a Volatility Skew Smile for the front month.

Skew Chart Delta Comparison

You can compare Deltas of various months to assist in creating Delta Neutral strategies.

Easily change the Display Data setting to show either Volatility, Delta or Theta.