# ATM IV Term Structure — StockMojo > ATM implied volatility across every expiry on one curve — read contango, backwardation and event kinks - Live page: https://stockmojo.in/iv-term-structure - Content last updated: 2026-06-26 - Platform: StockMojo — free options analytics for Indian markets (NSE F&O) This is a machine-readable markdown mirror of the live tool page. The live page shows real-time NSE data during market hours (09:15-15:30 IST) and supports 200+ F&O symbols via per-symbol URLs like https://stockmojo.in/iv-term-structure/banknifty. ## Frequently asked questions ### What is the ATM IV term structure? It plots at-the-money implied volatility for every listed expiry of one underlying on a single curve — from the nearest weekly out to the farthest month. Each point is the annualised volatility the option market is pricing for that specific horizon, so the shape shows how Nifty, BankNifty or a stock's expected volatility changes with time to expiry, rather than at a single tenor the way India VIX does. ### What do contango and backwardation mean on the IV term structure? Contango is the normal, upward-sloping state: far-dated expiries carry higher IV than near-dated ones because there is more time for uncertainty to unfold, and it dominates calm markets. Backwardation is an inverted curve where near-term IV sits above far-term IV — the market is pricing acute short-dated risk, either stress-driven (a selloff, with traders bidding up near-term puts) or event-driven (a known event that resolves on a specific date). ### How do I read an inverted (backwardation) term structure? A downward slope means the nearest expiries are the most expensive in volatility terms. Read it as a warning that the market expects an imminent move — around quarterly results, an RBI policy decision, the Union Budget, an election count or a sharp selloff. Backwardation tends to mean-revert: once the near-term event passes, front IV collapses (IV crush) and the curve swings back to contango, which is exactly the window premium sellers and calendar traders watch for. ### Why does the curve sometimes kink or bump at one expiry? A discrete event inflates implied volatility only in the expiry that brackets it, while the expiries before and after stay at their baseline — so a single date pops above the smooth curve. On Nifty and BankNifty this is usually the expiry holding the Union Budget, an RBI MPC decision, election results or a US Fed meeting; on stocks it is the expiry that contains the earnings date. The height of the bump is the market's estimate of the event's move. ### How is each expiry's ATM IV calculated? For every expiry the tool finds the ATM strike, then back-solves implied volatility from that strike's option premium against the synthetic future (Strike + Call − Put) using Black-Scholes, with the risk-free rate set to zero because the synthetic future already embeds carry. It uses the same out-of-the-money-leg convention as the option chain, so each point matches the chain's displayed ATM IV for that expiry. ### How do traders use the IV term structure? It is the map for calendar and diagonal spreads: sell the expensive (high-IV) expiry and buy the cheap (low-IV) one at the same strike. A long calendar works best when front-month IV is low and the back month is firm or rising; an event-driven backwardation lets you sell the rich near-term expiry against a cheaper far-dated leg. The standard rule is to close the spread once the event passes and front IV crushes back into contango, rather than holding to expiry. ### How is this different from India VIX and the intraday IV chart? India VIX is a single number — roughly the 30-day expected volatility of Nifty. The term structure generalises that idea across every expiry at once, so you read the whole curve instead of one point. The intraday IV chart tracks one expiry's ATM IV minute by minute through a session, whereas the term structure is a snapshot across all expiries at a single moment. Together they answer 'how is volatility moving today' and 'how is volatility priced across time'. ### Can I see the term structure for past dates? Yes. Live mode shows the current curve across all active expiries; historical mode rebuilds the end-of-day curve for any past trading session, so you can study how the shape shifted into and out of events. Comparing today's slope against recent sessions is the fastest way to spot a regime change from contango to backwardation or back. ## How to use the StockMojo ATM IV Term Structure 1. **Select an underlying** — Choose Nifty, BankNifty, Sensex or any F&O stock from the symbol selector. Each point on the curve is that symbol's ATM IV for one expiry. 2. **Pick live or historical** — Use live mode for the current term structure across all active expiries, or historical mode with a date to rebuild that session's end-of-day curve. 3. **Read the slope** — An upward slope (contango) is the calm, normal state. A downward slope (backwardation), where near-term IV is highest, flags imminent risk. 4. **Spot the kinks** — A single expiry popping above the curve marks an event landing in that expiry — Budget, RBI policy, results or a Fed meeting. The bump sizes the expected move. 5. **Position with spreads** — Sell the richest expiry and buy the cheapest at the same strike for a calendar or diagonal, then close once the near-term event crushes IV back into contango. ## Related tools - [IV - Intraday](https://stockmojo.in/implied-volatility-chart) — markdown: https://stockmojo.in/implied-volatility-chart.md - [Volatility Skew](https://stockmojo.in/volatility-skew) — markdown: https://stockmojo.in/volatility-skew.md - [IV / HV / IVP Chart](https://stockmojo.in/iv-chart) — markdown: https://stockmojo.in/iv-chart.md - [Straddle Chart](https://stockmojo.in/straddle-chart) — markdown: https://stockmojo.in/straddle-chart.md ## Glossary Terms used: implied-volatility, volatility-term-structure, contango, backwardation, calendar-spread, iv-crush. Definitions: https://stockmojo.in/glossary