Analyze Volatility Trends
Volatility (Vol) charts track changes in both implied and historic volatility. OptionsHouse provides these charts to you as a means of analyzing volatility trends. You can compare implied volatility against historic volatility to look for similarity, or divergence, in trends. Or you can compare the implied volatility of a 25–delta call to the implied volatility of a 25–delta put as your bellwether indicator.
A comparison of standard volatility trends is also available, which compares implied volatility to historic volatility. Some traders use the divergence of these indicators to look for opportunities.
The volatility chart tool is set up to show a separate graph for both an upper indicator and lower indicator. The default shows the difference between the 25–delta call and the 25–delta put. Tables on the left provide data views of both implied and historic volatility.
The Volatility Charts tool is intended to provide informational and educational information only. The information provided by Volatility Charts does not constitute a recommendation and should not be acted on as such. You are solely responsible for all trading decisions.