Volatility skew
How to read this chart
OTM IV by strike for the nearest expiry. A steep curve away from the ATM strike means tail risk is priced in that direction; a flat curve means it isn't.
- Put skew (left steeper) — downside risk priced; common before events or in risk-off.
- Call skew (right steeper) — upside priced; rarer.
Methodology & data
NSE and BSE don't publish implied volatility directly, so IV here is back-solved per strike from its own last-traded price via Black-Scholes, with the risk-free rate assumed 0 — the same solver behind the gamma exposure page. This page shows one expiry only (the nearest captured), so it's a skew smile for a single expiry, not a full term structure — see IV term structure for that.
What is volatility skew?
The difference in implied volatility between out-of-the-money puts and calls at the same distance from the current price, for one expiry. Persistent put skew usually reflects structural demand for downside hedges.
How is IV calculated since NSE doesn't publish it?
Back-solved per strike from its own last-traded price via the Black-Scholes formula, assuming a 0% risk-free rate — the same method used on the gamma exposure page.
Is this the same as the IV term structure page?
No — this page shows the skew smile for one expiry (the nearest captured). For at-the-money IV compared across every listed expiry, see IV term structure.
Which indices are covered?
NIFTY, BANKNIFTY, SENSEX, FINNIFTY, MIDCPNIFTY and BANKEX — switch between them using the selector above the chart.