# Volatility

Term structure, smile, the surface, vol premium, implied distribution and the pricer.

| View | What it shows |
|---|---|
| **Vol lab** | Implied vol by expiry, skew per expiry, realised vol, the vol-of-vol regime and the dealer stress index |
| **Volatility premium** | Implied minus realised: is vol rich or cheap? |
| **IV smile** | Implied vol across strikes for each expiry |
| **IV surface** | A 3D surface of implied vol across strike and expiry |
| **Implied distribution** | The options-implied range for price over the coming weeks |
| **Options pricer** | A what-if calculator: set your own inputs and see the price, the greeks and a payoff chart |

## Reading the term structure

A near-dated spike above the rest of the curve usually means a known event is
priced in, such as earnings or a major economic release.

## Skew

Puts priced above calls is normal for equity indexes. What matters is the
change: skew steepening session over session means demand for protection is
building, and it often moves before headline volatility does.

## Dealer stress index

One 0 to 100 reading of how constrained dealers are right now.

| Reading | What to expect |
|---|---|
| **75 and up (critical)** | Wide quotes, thin books, moves amplified. Cut size. |
| **55 to 75 (elevated)** | Momentum favoured over mean reversion. |
| **30 to 55 (normal)** | Levels behave as expected. |
| **Below 30 (low)** | Liquidity is plentiful. Pins and fades tend to work. |

The pricer does not use live market data. It is for understanding how a
position's price and risk change as one input moves.