🦙 OpFi introduces Volatility Charts - an advanced tool for traders who use volatility as an essential part of analyzing the market situation and future price behavior. To start analyzing volatility, select an underlying asset such as BTC or ETH or any other available asset, so that we can load the data.
At the moment, since the site is new and does not have enough data to calculate IV Percentile, IV Rank and VRP Rank charts, we want to warn users not to use this information in their analysis, as it will not be accurate. - We will correct this text in the next 2025 on August 3rd, when we will have enough information in our database to calculate these charts accurately.
First of all, we should say what volatility is - it is a term we use to describe how stable or unstable the price of the underlying asset is on the spot market. At the same time, the term implied volatility is the traders' view of the price of the underlying asset through options, and how the majority expect a certain behavior of the asset price in the future. In addition, implied volatility can be viewed as a measure of the liquidity of the underlying asset. IVs will fall when liquidity is abundant and rise when liquidity is scarce.
1. VIX (Volatility Index, or Fear Index) - we use a standardized way to calculate the VIX, as it is done in the traditional options market and as it is done by the Deribit exchange. In a nutshell, this index reflects traders' nervousness about what will happen to the underlying asset in the next 30 days. Figuratively speaking, the more panic, the higher the VIX.
2. RV 30D (Realized Volatility or Historical Volatility) - is calculated as the standard deviation of the logarithm of the asset's price, reduced to an annual period (in our case, it's a 30-day period). Translated into human terms, historical volatility represents the degree to which the price of the underlying asset has changed over time. A high volatility indicates that the price of an asset can change dramatically in either direction over a short period of time, while a lower volatility indicates that the price of the asset is relatively stable.
3. Volatility Term Structure - calculated by the central strike through all expiration dates. Usually, the term structure has an increasing shape. This is due to the greater uncertainty regarding the price movement of the underlying asset over a long period of time.
4. Risk Reversal Skew - calculated by the difference between call and put implied volatilities for out-of-the-money options. This chart is used to analyze risk and understand the cost of protecting against a decline or increase in the price of the underlying asset.
5. Risk Reversal Delta 10/25 - calculated by the difference between call IV and put IV for out-of-the-money options, only unlike Risk Reversal Skew, we calculate RRH on options with deltas of 0.1 and 0.25.
Explaining the aggregated view:
You can choose between an aggregated view (Deribit, Binance, ByBit, OKX and CoinCall only) and an advanced view (includes Delta, Thalex). The only difference is that the advanced view shows volatility on options across exchanges. By aggregated data, we mean that we group options by strike, expiration and contract type. To calculate aggregated volatility, we use the arithmetic mean of the values across all relevant contracts. This approach simplifies the process of analyzing how trader interest is distributed in the options market.
How to change the view:
If you want to analyze volatility across exchanges, simply change the view of the page using the "View" button.