📈【Market Sentiment Indicator】From IV to skew: The True Way Institutional Traders View the Market!

📑 In the past few days, I've been studying options' IV (Implied Volatility) and Skew; I truly believe these two are shortcuts to understanding market sentiment. Remember: Skew is sentiment, IV is volatility expectation! 👇🏼👇🏼

🌟🌟 Based on the market pricing relationship of IV × Skew, I will organize this next and create charts that can be directly used to judge market phases: IV & Skew Market Trend Matrix 🌟🌟

First, let me briefly introduce IV and skew:

📈 IV = the market's pricing for future volatility: it does not predict direction, but reflects "to what extent future fluctuations might occur, so how much options should be worth."

IV Range:

↗️ Contango: short-term low, long-term high = market calm.
↘️ Backwardation: short-term high, long-term low = market panic / mania.

〰️ Skew = the difference in IV between different strike prices: tells you what the market is worried about.

Skew term structure (direction):

➖ Negative Skew: Puts are more expensive = the market fears a drop.
➕ Positive Skew: Calls are more expensive = the market fears missing out (FOMO).

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#加密市场观察