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IVx & term structure

IVx is TanukiTrade's implied-volatility index for one expiration. Rather than reading a single strike's IV, it blends near-the-money strikes and the wings so you can compare implied volatility cleanly from one expiration to the next.

IVx Avg is the symbol-level summary shown in headers, Symbol Spotlight, and the Screener. Its five-day change describes how implied volatility moved over the past five sessions, not a forecast of the next five days.

IVx term structure shapes across expirations: Contango, Flat, and Backwardation Conceptual chart comparing three IVx term structures across expiration dates (0/1, W1, W2, M1, M2): upward-sloping Contango, horizontal Flat, and downward-sloping Backwardation where near-term IVx sits above later expirations. IVx term structure — comparing implied volatility across expirations High IVx Mid IVx Low IVx 0 / 1 W1 W2 M1 M2 Expiration horizon (near-term → further-dated DTE) Contango (↗) IVx rises with DTE Flat (→) Similar IVx across dates Backwardation (↘) Front IVx richer than back Each dot is one expiration’s IVx blend. Catalysts (earnings, CPI, FOMC) often lift near-term IVx into backwardation.
Plotting each expiration’s IVx from near-term to further-dated DTE reveals the term structure: Contango (rising with DTE), Flat, or Backwardation (front expiry richer than later expiries).
  • Contango (↗) — IVx rises with DTE. The normal baseline when no immediate catalyst is priced into the front week.
  • Flat (→) — little difference in annualized IVx from one expiration to the next.
  • Backwardation (↘) — a nearer expiration carries higher IVx than a later expiration, typically ahead of earnings, FOMC, CPI, or during acute front-end stress.

IV Rank (IVR) tells you where the symbol sits in its own 52-week history; IVx tells you the annualized volatility priced into a specific expiration. The 1σ expected move uses that expiration's IVx. For how TanukiTrade measures the step-by-step IVx difference between expiries alongside strike skew, see Vertical & horizontal skew.

Compare like with like

An annualized IVx value of 30% is not a forecast of a 30% move by the next expiration—time scaling (√(DTE / 365)) converts annualized IVx into an expiration’s expected move. Check which expiration is behind the number when comparing a per-expiry Matrix row with a symbol-level header summary.

More time generally increases an option’s dollar time value, but it does not require annualized IVx to rise with maturity. A dated catalyst can lift a short expiration well above later expirations.

Where you see it

TanukiTrade documentation. Levels are context, not a recommendation. tanukitrade.com