Volatility Skew vs Volatility Term Structure

The asymmetry in implied volatility between OTM puts and OTM calls at equivalent delta distances from the current price; put skew (OTM puts more expensive) indicates bearish tail fear; call skew (OTM calls more expensive) indicates bullish tail demand; measured by the 25-delta risk reversal as a sentiment indicator.

The pattern of implied volatility (IV) across different expiration dates for the same underlying asset and strike price, reflecting market expectations for volatility at different timeframes.