# Gauge market sentiment with Implied Volatility

Evaluate the market outlook for various dates using our [Kaiko Derivatives Risk Indicators](/rest-api/analytics-solutions/kaiko-derivatives-risk-indicators.md) solution. IV provides one figure that accounts for options contracts with various strikes and expiries, enabling a more accurate view of the overall market sentiment. For example, if an IV curve is steep to the left, this suggests the prevailing market sentiment sees prices falling.

<figure><img src="/files/bYDLXOPJmaqGmJFHmJ52" alt=""><figcaption><p>Here we see an IV smile across all expiries which means there is a high probability of price moves in either direction. There is a slight skew to the left on the shortest expiry (orange), suggesting higher demand on the short side.</p></figcaption></figure>

### How to build the request

With the Implied Volatility [smile](/rest-api/analytics-solutions/kaiko-derivatives-risk-indicators/implied-volatility-calculation-smile.md) endpoin&#x74;**,** you can use the following parameters. This example calculates just one expiry, but you can also run a script locally to request and combine expiries like the chart above. Contact our operations team for support with this.

| Paramater   | Value                    |
| ----------- | ------------------------ |
| base        | btc                      |
| quote       | usd                      |
| exchange    | drbt                     |
| value\_time | 2024-09-25T10:20:09.224Z |
| expiry      | 2024-06-28T00:00:00.000Z |
| deltas      | 0.05                     |

You can find specific asset codes from our [instruments explorer](https://instruments.kaiko.com/#/instruments) or [reference data](https://docs.kaiko.com/#assets).

### Example request

Here's an example of an HTTP string request using the values above.&#x20;

{% code overflow="wrap" %}

```url
https://us.market-api.kaiko.io/v2/data/analytics.v2/implied_volatility_smile?base=btc&quote=usd&value_time=2024-09-09T14:00:00.000Z&expiry=2024-10-25T00:00:00.000Z&exchanges=drbt&strikes=30000,40000,50000,60000,70000,80000,90000,100000
```

{% endcode %}

When you receive your response, search for the following fields to find the data you need:

* `implied_volatilities_strike`
* `implied_volatilities_implied_volatility`


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# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.kaiko.com/getting-started/kaiko-examples/gauge-market-sentiment-with-implied-volatility.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.