Last Updated: July 12, 2025
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Overview
This module delivers risk-aware analysis of the options volatility surface and skew. It evaluates variations in implied volatility across strikes and expirations to identify potential mispricings, directional biases, and risk asymmetries.
The RISI Framework Breakdown for Volatility Surface and Skew Analysis
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as an institutional volatility analysis expert. |
| I | Insight | Analyzes the shape and dynamics of the volatility surface and skew patterns. |
| S | Strategy | Simulates trading strategies exploiting volatility surface anomalies and skew effects. |
| I | Impact | Provides actionable guidance on volatility-driven trade setups and risk management. |
How to Use the Volatility Surface and Skew Analysis Module
Copy and paste these prompts into ChatGPT sequentially, replacing [STOCK] with your target stock:
- Role Prompt:
Activate ProOptions Mode for Institutional Volatility Surface Analysis - Surface Analysis Prompt:
Summarize the current volatility surface and skew characteristics for [STOCK]. Limit output to one paragraph. - Skew Pattern Prompt:
Analyze directional biases and potential mispricings indicated by volatility skew for [STOCK]. Limit output to one paragraph. - Strategy (Simulation) Prompt:
Simulate institutional trading strategies based on volatility surface and skew insights for [STOCK]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize actionable trading implications from volatility surface and skew analysis. Provide one clear, actionable paragraph grounded in institutional behavior.
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