Relationship between implied volatilities of different timeframes

[Martinghoul]

I am more looking from intraday point of view in short term to take some sort of swing trades based on how different IVs are moving. Normally, IV Short/Term rises when the underlying is falling and vice versa. But looks like oil behaves differently.

Indeed... Looks like vol spikes when oil jumps (which, I guess, makes sense, since these jumps often occur when there's actual geopolitical uncertainty). And, obviously, shorter expiry vol is always going to move more than longer expiry. So it kinda makes sense...

 

[Martinghoul]

Your plots came from Bloomberg Finance? How do I get one?

Thanks.

The BBG terminal is expensive, which makes it impractical for a variety of contexts.

 

[mwahal]

Indeed... Looks like vol spikes when oil jumps (which, I guess, makes sense, since these jumps often occur when there's actual geopolitical uncertainty). And, obviously, shorter expiry vol is always going to move more than longer expiry. So it kinda makes sense...

But what makes me curious is why only IV30 is jumping and not IV15 ?

 

[Martinghoul]

But what makes me curious is why only IV30 is jumping and not IV15 ?

I dunno... For this, I think you may wanna look in detail at exactly what's been happening. Like what trades have gone through during those few days.