VOL TERM STRUCTURE TOOL #80

BBobop — 80th Tool Milestone

Enter tickers to analyze volatility term structure using realized vol at multiple time horizons

Vol Term Structure

The volatility term structure shows how implied/realized volatility varies across time horizons.

Contango (Normal): Long-term vol > short-term vol. Normal market conditions. Calendar spreads: sell near, buy far.

Backwardation (Inverted): Short-term vol > long-term vol. Fear/stress in markets. Short-dated options are expensive. Mean-reversion trade: sell near-dated vol.

Term Premium: The slope of the term structure. Steep = high uncertainty about the future. Flat = stable expectations.

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