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Examine the complete implied volatility surface across strikes and expirations to identify dislocations, relative value opportunities, and changes in market positioning. Compare current conditions with historical norms to understand where volatility is unusually rich or inexpensive.

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Skew is the graphical image of Implied Volatilities of a particular Stock/Future expiry displayed in strike or Delta space. Skew is simply drawing a line to connect these various points. The Skew graph can take on three different characteristics. The Security can have a Normal Skew, Positive Skew, or Negative Skew. Normal Skew is actually quite rare as it is a skew curve that looks like a “U”. The current price (At the money) implied volatility is the cheapest along the curve with equal weighted risks to both the call and put side. A positive Skew is when the Call side implied volatility is much more expensive than the Put side. A Negative Skew is the opposite as the Put side is more expensive than the Calls. There are various drivers of Skew, but the easiest to explain and understand is in an equity index. The negative skew is extremely obvious in the Indices as Put options are a natural hedge for asset managers, hedge funds, pension funds, and others who are all invested on the long side of the market.

What is skew?

Option traders need to know about Skew for three main reasons. First, it is incredibly important to know if an option is rich or cheap compared to other delta options. Second, it is equally as important to know whether a particular option is historically rich or cheap compared to itself. Mean reversion is a sound trading strategy because historically rich or cheap options do tend to revert back to normal levels. Third, the shape of a particular Skew will help the trader with strike selection in a structure. For example, if I as a trader am bullish Tesla stock and want to express my view using options. There are numerous structures that I can choose from, but which one? If the 30 Delta call is the low point on the skew curve and call skew goes aggressively higher, it may be a smart play to take advantage of that steep skew and buy the 30 delta Call as part of a vertical Call spread.

How does knowing the skew help a trader?

Leviathan has Skew analysis that is second two none. Leviathan Skew allows its members to analyze Skew in to very distinct ways. First, the trader can look at one single expiry over many historical time frames. Second, the trader has the ability to look at all of the expiries of a particular stock/future and compare those with each other. This knowledge now allows the trader to make an informed decision as to whether the skew was historically rich/cheap, and if so, which expiry is the richest/cheapest. With this knowledge now in hand, the trader can intelligently implement their strategy with confidence.

How can Leviathan help with Skew?

Key Capabilities

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futures

Like line chart, this charting tool also has access to the full suite of technical analysis, also using the world's most powerful HTML5 charting system with 100s of available studies.

What is the "Technical Analysis" charting tool ?

The Technical analysis chart focuses on examining and anticipating price movements in financial markets. Technical analysts learn to identify historical market patterns so they can predict forthcoming market trends and make smart trending decisions based on those predictions. Not surprisingly, an enterprise technical analysis solution helps visualize movements and patterns in a meaningful way.

How does the futures/stock charting tool help traders?

With Leviathan it is as easy as 1,2,3. We are the only service that can easily provide historical charting on complex options strategies with a click of a button. With 100’s of different studies, you can visualize futures historically or within a specific time span and view events that occur within it as it relates to the market and analysis all the relevant data points allowing you to comprehend the interrelationship between different futures and stocks and how they perform over complex events.

How can Leviathan help with utures/stock charting tool ?

Like line chart, this charting tool also has access to the full suite of technical analysis, also using the world's most powerful HTML5 char

Technical Analysis

<p>Examine the complete implied volatility surface across strikes and expirations to identify dislocations, relative value opportunities, and changes in market positioning. Compare current conditions with historical norms to understand where volatility is unusually rich or inexpensive.</p>

Volatility Surface Analysis

Explore every dimension of a strategy through fully interactive analytical charts. Compare historical behaviour, projected performance, Greeks, volatility and profitability across multiple scenarios with institutional-grade visualization tools.

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line-chart

Leviathan Line Chart - The World's Most Powerful Financial Analysis Chart system with 100's of available studies Mobile responsive. Stay ahead with Leviathan, leave it to us we do all the leg work

What is line chart?

Technical analysis focuses on examining and anticipating price movements in financial markets. Technical analysts learn to identify historical market patterns so they can predict forthcoming market trends and make smart trending decisions based on those predictions. Not surprisingly, an enterprise technical analysis solution helps visualize movements and patterns in a meaningful way.

Why is technical analysis so important?

When you have an option strategy, future, or equity in mind it is as easy as 1,2,3 with LeviathanFM. We are the only service that can easily provide historical charting on complex options strategies with a click of a button. With 100's of different studies, you can visualize options historically or within a specific time span and view events that occur within it as it relates to the market and analysis all the relevant data points allowing you to comprehend the interrelationship between options and complex events.

How can Leviathan help with line chart?

Explore every dimension of a strategy through fully interactive analytical charts. Compare historical behaviour, projected performance, Gree

Advanced Strategy Analytics

The Heat Map Heat Map is a forward looking tool to show how a structure performs with respect to time elapsing and future movement. Some str

Heat Map

Visualize how every strategy responds to changes in price, volatility, and time before placing a trade. Instantly identify the regions where opportunities strengthen or risk begins to increase, allowing you to understand the behaviour of a strategy under thousands of different market scenarios.

Skew is the graphical image of Implied Volatilities of a particular Stock/Future expiry displayed in strike or Delta space. Skew is simply drawing a line to connect these various points. The Skew graph can take on three different characteristics. The Security can have a Normal Skew, Positive Skew, or Negative Skew. Normal Skew is actually quite rare as it is a skew curve that looks like a “U”. The current price (At the money) implied volatility is the cheapest along the curve with equal weighted risks to both the call and put side. A positive Skew is when the Call side implied volatility is much more expensive than the Put side. A Negative Skew is the opposite as the Put side is more expensive than the Calls. A fundamental risk management tool is the ability to measure the profit and loss of a trade or position over time and changes in market price and conditions. Our Heat maps are forward looking data visualizations, allowing you to view a 2 dimensional grid showing you the price or P&L of your selected position or structure over underlying future or stock moves and how that price or P&L changes over time and with respect to moves in the underlying equity or future. You can specify market conditions in an easy to understand manner.

What is heat map?

Understanding risk is one of the most important things in trading. Options can be one of the most complex financial instruments but when wielded correctly can yield the greatest results. Trying to ascertain the total risk of a position, with its many moving parts can be challenging for the most experienced traders.

How do heat maps help a trader?

Leviathan does all the workload for you! Presenting you with a simple visual representation of risk and P&L. The predictive capabilities of the Leviathan allow you to safely navigate your true risk and help minimize portfolio drawdowns. You can also look at how your option greeks change over time and movement and beta adjust spreads to analyze the strategy's performance in flattening, steepening, backwardation or cantango markets. By demonstrating how and why things could quite quickly become much better or worse in new and unexpected ways, heat map improves readiness for the range of possibilities the future may hold.

How can Leviathan heat maps help you trade?

Visualize how every strategy responds to changes in price, volatility, and time before placing a trade. Instantly identify the regions where

Volatility Surface Analysis

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Heat Map

Heat Map

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