Volatility Skew Term Structure Trading

objective

Execute volatility-relative-value workflows with robust surface diagnostics and vega-aware risk controls.

workflow

1. define vol-view hypothesis across skew and term dimensions.
2. build strike-tenor spread structures with balanced greek exposures.
3. compute skew and term dislocation metrics versus historical baselines.
4. stress position behavior under parallel and non-parallel surface shocks.
5. release only when carry, convexity, and liquidity risks are controlled.

required diagnostics

• skew percentile and zscore by maturity bucket.
• term-structure slope and curvature stability.
• vega concentration across strike and tenor nodes.
• realized-versus-implied spread persistence.
• execution slippage impact on net vol edge.