Term structure of vol
TradingDefinition
How implied volatility varies across option expiration dates. Normal: short-dated options are LESS volatile than long-dated ones (term structure in contango). Inverted: short-dated MORE volatile (typically a stress signal).
VIX9D (9-day) vs VIX (30-day) vs VIX3M (3-month) vs VIX6M is the standard SP500 term-structure ladder. Short-end spikes during panic, then normalizes.
VIX9D (9-day) vs VIX (30-day) vs VIX3M (3-month) vs VIX6M is the standard SP500 term-structure ladder. Short-end spikes during panic, then normalizes.